Non-profit Organizations Filing Deadline

The Pension Protection Act of 2006 mandates that all non-profit organizations, other than churches and church related organizations, must file an information form with the IRS.  This requirement has been in effect since the beginning of 2007, which made 2009 the third consecutive year under the new law. Any organization that fails to file for three consecutive years automatically loses its federal tax-exempt status.  The filing deadline is the fifteenth day of the fifth month after the end of the organization’s year.  For organizations that operate on a calendar year the filing deadline for 2009 is May 17, 2010.

Other elements:

  • Provides statutory authority for employers to enroll workers in defined contribution plans automatically; formerly, the authority came from DoL rulemaking
  • Expands disclosure that workers have about the performance of their pensions
  • Removes the conflict of interest fiduciary liability from giving self-interested investment advice for retirement accounts
  • Gives workers greater control over how their accounts are invested
  • Extends the 2001 tax act’s contribution limits for IRAs and 401(k)s.
  • Allows automatic contributions to be returned to employees without tax penalties, if employee opts out within 90 days
  • Established safe harbor investments, also known as Qualified Default Investment Alternatives, to protect employers from liability of losses suffered by automatically enrolled employees.