Jump to content

Safe Harbor contribution not made


pam@bbm

Recommended Posts

One of our plans has a 3% safe harbor non-elective employer contribution.     The employer has yet to make the 2019 contribution.     Also the employer filed for bankruptcy in 2019.   Is there a penalty or other problem with this?    I know it's a failure to follow the plan document, but I'm not sure what the ramifications are.  

Any advice is appreciated.

Link to comment
Share on other sites

I should have mentioned above that there is a bankruptcy preference for unpaid wages. It's a certain percentage, I recall, capped at a dollar amount, of employee wages. Usually that is used up by, ready for it, unpaid wages, but it can also apply to delinquent retirement contributions if there is any amount left over.

Luke Bailey

Senior Counsel

Clark Hill PLC

214-651-4572 (O) | LBailey@clarkhill.com

2600 Dallas Parkway Suite 600

Frisco, TX 75034

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...