FundeK Posted April 20, 2004 Posted April 20, 2004 From Sal's ERISA Outline book, Chapter 14 PTE 80-26 permits interest free loans to the plan by a party in interest to be used for the payment of ordinary operating expenses, or for a purpose that is incidental to the operation of a plan. If it is for incidental expenses, it can not be for more than three business days. The DOL did cite an overdraft as being incidental. QUESTIONS: What happens if the trust is overdrafted for more than three days? What about excess cash? Should it be treated the same way? Is there any other cites/articles/anything that deals with this issue? How does your company handle overdrafts?
E as in ERISA Posted April 20, 2004 Posted April 20, 2004 There was an advisory opinion issued to American Bankers Association last year: http://www.dol.gov/ebsa/regs/aos/ao2003-02a.html
FundeK Posted April 22, 2004 Author Posted April 22, 2004 Thanks Katherine! Are there any recordkeepers out there that can tell me what your policy is regarding overdrafts?
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