Timely Deferral Deposits

[austin3515]

Can anyone tell me if the DOL was quoted anywhere as saying that the fact that certain TPA's or investment companies refuse to accept (or charge additional fees for) more than 1 deposit per month should not factor into the analysis of when participant contributions can be segregated.

I think they also said that the fiduciary should reevaluate a relationship with a company that precludes the ficuciary from fulfilling his or her responsibilities.

Any help would be great.

[Archimage]

I don't know if they directly said that but I would agree that would be the position of the DOL. There is nothing stopping an employer from opening a checking account in the name of the plan and depositing the deferrals into the account until they can actually have them segregated among the investments. I think this could raise some fiduciary issues under 404© assuming the plan is using this protection. I would agree that an employer might want to find another vendor that does allow for higher frequency contributions.

[Alf]

Are you talking about a limit from the investment fund company or the TPA. It would be incredible if a TPA didn't allow more than one contribution per month. I agree that the DOL is not going to care. The fiduciaries have to comply with the DOL plan asset rules.

[Harwood]

http://www.reish.com/practice_areas/Techni...ps/DOLtip21.cfm

[austin3515]

That;s exactly where I saw it too!!

That's why I love thse boards!