contributions

[Felicia]

When must contributions be made to 403(b) arrangements?

What happens if contributions are deducted from compensation and sent to the investment company but are never received?

[mbozek]

Under Dol rules employee salary reduction contributions for an ERISA plan must be made as soon as administratively feasible but no later than the 15th day of the month following the withholding from salary. For non ERISA plans the employer may pay the premium to the carrier on an annual basis even though the amounts are withheld monthy from the employee's pay. Rev. ruling 67-69. For 415 limit purposes the contribution must be made to the plan no later than 5 1/2 months after the end of the employer's taxable year (or fiscal year) in which the particular limitation year ends. reg. 1.415-6(b)(7)(ii) to be counted for that limitation year.

I dont understand how contributions could be sent to the investment co. but are not received.

[Ellie Lowder]

Felicia, keep in mind that many states have passed legislative dictating the timing of remittance of salary reduction contributions in ERISA plans - thus, in addition to IRC, state law must be checked. In some states, the requirements are pretty stringent.

[wmyer]

What are the timing requirements for matching and/or employer basic contributions within a 403(b) arrangement for a tax-exempt entity like a hospital? Since there's no income tax filing deadline, when do contributions have to be made? Before the 5500 filing? Before 12 months after the plan year end?

[GBurns]

wmyer,

What does the Plan Document etc say?

Why would you say that "there's no income tax filing deadline" ? Doesn't the 415 limits pointed out by mbozek apply to this plan? Even a tax exempt organization has a filing form e.g 990 and a filing deadline.

Felicia,

I also do not understand how contributions can be sent and yet not received.