Jump to content

Stock sale - contribution


PS

Recommended Posts

Hi, 

Plan is terminating due to stock sale - the sale date is 05/13, the plan will terminate by 05/12.  The term date is 5/12 (thurs)  and pay date is 5/13 (Fri) terminating plan will  deduct/withhold the contributions on 5/10  (tues) I believe they can still post to the term plan since the deductions were withheld prior to the term date correct? or is it pay date driven?

Thanks

Link to comment
Share on other sites

If the employer, without waiting for Friday’s payment of after-reductions net wages, processes the wage reductions on Tuesday, why not pay over the contributions on Tuesday (or on Wednesday morning)?

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

Link to comment
Share on other sites

On 4/1/2022 at 10:28 AM, Peter Gulia said:

If the employer, without waiting for Friday’s payment of after-reductions net wages, processes the wage reductions on Tuesday, why not pay over the contributions on Tuesday (or on Wednesday morning)?

Current pay period 05/01/202022 – 05/15/2022 – The plan is terminating effective 05/11/2022 and hence the contribution should only be for the days from 05/01-05/11.  but I'm not sure how the short plan year will be calculate

Link to comment
Share on other sites

  • 2 weeks later...
On 3/31/2022 at 2:08 PM, PS said:

Hi, 

Plan is terminating due to stock sale - the sale date is 05/13, the plan will terminate by 05/12.  The term date is 5/12 (thurs)  and pay date is 5/13 (Fri) terminating plan will  deduct/withhold the contributions on 5/10  (tues) I believe they can still post to the term plan since the deductions were withheld prior to the term date correct? or is it pay date driven?

Thanks

I agree. The plan had to be "alive" to have amounts deferred under it, but even terminated plans need to collect contributions owed, investment income, etc. while they are winding up.

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...