Do the regulations address the time frame in which a participant’s personal contributions must be deposited into the plan?
The general rule under the final regulations is that all contributions must be made to the fund provider within “a period that is not longer than is reasonable for the proper administration of the plan.” The regulations indicate that employee elective deferral contributions should be deposited within an administratively feasible period, typically within 15 business days following the month in which these amounts would have been paid to the employee, if not deferred. The key thought is that the IRS is seeking to ensure that contributions are properly and efficiently handled by the plan sponsor from the point of withholding to the point of contribution to the plan.
Related Questions
- Do the regulations address the time frame in which a participant’s elective deferral must be sent to the provider?
- Do the regulations address the time frame in which a participant’s elective deferral must be sent to the vendor?
- What happens if I do not achieve accreditation status according to my agreed upon plan within the time frame?
