Roger389 Posted February 19, 2020 Report Share Posted February 19, 2020 Hi all, Thank you in advance for your input. Long time lurker, but 1st time poster. My question pertains to the language of the governing IRS rule, IRC section 408(p)(5)(A)(i) for SIMPLE IRA employee deferrals: Quote (A) an employer must— (i) make the elective employer contributions under paragraph (2)(A)(i) not later than the close of the 30-day period following the last day of the month with respect to which the contributions are to be made, and The IRS FAQ states: Quote You must deposit employees’ salary reduction contributions to their SIMPLE IRAs within 30 days after the end of the month in which the amounts would otherwise have been payable to the employees in cash I'm paid monthly, on the first business day of the subsequent month. For instance: January-->paid 2/3/20 for January February-->paid 3/2/20 for February March-->paid 4/1/20 for March My interpretation of the IRS regulation is that elective employee salary deferrals should be made as following: For work performed in January, no later than 30 days from 1/31 For work performed in February, no later than 30 days from 2/29 etc etc. However, my employer is interpreting this as "since I'm being paid in in February", the employer has 30 days from the end of February (i.e. end of March) to make what were my January salary deferrals. I strongly disagree and feel that this 60 day window is a clear violation of the law. What do you think in response to the IRS definition of "in which the amounts would otherwise have been payable to the employees in cash" Please let me know if I need to clarify. Link to comment Share on other sites More sharing options...
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