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A specialist at EMJAY Retirement Plan Services, Inc. will collect financial information from you, your client, or the client's tax advisor at certain points in the set up and administration process. This information is used to: |
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- Prepare the prototype Adoption Agreement for your client's signature
- Calculate the precise contribution amount each year
- Complete the plan's annual tax reporting forms
- Process any amendments to the plan
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Key dates to keep in mind: |
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Plan Set Up and Installation |
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Plan must be set up and account opened by December 31 (or the end of your client's fiscal year). |
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Funding the Small Business Pension Program |
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Deductible contribution must be funded when taxes are filed but no later than September 15. |
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Amending the Plan |
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Increasing the Annual Contribution: |
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If a client qualifies, the contribution amount for the current tax year may be increased through December 31 or the end of your client's fiscal year. |
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Decreasing the Annual Contribution: |
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A client can generally decrease the contribution amount for the current tax year before 500 hours of service have been completed (generally around March 1). Once that point is crossed, the change to the contribution amount generally won't be effective until the next tax year. |
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