Guest Fauxqui Posted March 10, 2003 Posted March 10, 2003 After receiving notification that their provider would be getting out of the (SIMPLE IRA) business on 12-31-02 my client sent the contributions to the custodian for the fourth quarter of 2002. They sent them in on 12-15 but they were returned by the custodian after 1-1-03 with a note stating that they had been received too late. They now have a check representing contributions that were withheld from employee pay during the fourth quarter and don't know what to do with them. The account balances were distributed to the employees and will be rolled over into the new 401(k) but what can they do with the funds that were returned?
Gary Lesser Posted March 16, 2003 Posted March 16, 2003 The employer can (MUST) establish SIMPLE IRAs at another institution that accepts contributions as soon as administratively feasible (read: "fast"). Regulations even permit employer to establish documents when employee refuses to establish, can't be located, and so on. The check can be deposited and replaced with an employer check.
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