Employee deferrals contribution time limits

[Guest bblack]

Is there a regulated time limit in which employers must send in employee deferrals to a 403(B) Plan.

If so, are there penalties for non-compliance.

Thanks

[Carol V. Calhoun]

Are we talking about a governmental 403(B), a church 403(B), or a 403(B) of a private tax-exempt employer?

[mbozek]

For 403(B) plans subject to ERISA, the contributions are generally required to be remitted no later than the 15th day of the month following the date they were withheld from the employee's pay. Late payments may be subject to a 5% penalty under ERISA 502(i) but you need to check with counsel.

For non ERISA plans there is a pre ERISA IRS ruling that allows the employer to remit the funds as infrequently as once a year.

Also Reg. 1.415-6(B)(7) requires contributions by tax exempt employers to be remitted no later than 5 1/2 months after the taxable year/fiscal year with or within which the limitation year ends in order to be credited as an annual addition for such tax/fiscal year. I don't how this rule extends to government employers who do not file 990s.

[Guest bblack]

Thanks for the feed back...

More specifically this is a non-ERISA qualified Church Plan 403(B).

It was also intended towards an individual church sending in contributions for a staff member's withheld deferrals.

Also, by any chance do you have any specifics (as to the location) of the Pre-ERISA ruling that was mentioned?

Thanks again so much...It's been a real challenge to find any documentation on this even though it seems like a common situation that could be asked/encountered

[mbozek]

Rev. Rul. 67-69