SIMPLE plan: When does employer have to match ?

[Moe Howard]

Can employer wait until last day of plan year to match for a Simple-IRA ..... or must he match monthly (throughout the Simple's plan year)

What about a Simple-401(k) ?

[mbozek]

What does the SIMPLE plan document say about frequency of employer matching contributions?

[Moe Howard]

It says nothing about the required frequency of matching. It only states the "% limit" that must be matched.

Is there any IRS or DOL requirement regarding frenquency ?

[R. Butler]

Are you asking by what date the employer matching contributions must be deposited? If that is the question, then generally employer contributions must be made by the due date of the employer's federal tax return, including all valid extensions. This is true even for a SIMPLE-IRA

[Moe Howard]

Yes, that's what I'm asking. When must the match be deposited?

[R. Butler]

By the due date of the employer's federal tax return. If you are using the IRS SIMPLE-IRA document, I am fairly certain it states it right on the form.

The rule doesn't change for SIMPLE 401(k).

[Moe Howard]

R.Butler: You say it states it on the "form".

What form ?

[R. Butler]

If you are using the 5304 or 5305, it states it on the 5304/5305.

[mbozek]

It is also in IRC 408(p)(5)(A)(ii).