Jump to content

Late employee contributions question


Recommended Posts

Guest LVanSteeter
Posted

Situation:

Small 401(k) plan had a fire that destroyed office. Due to this there were late employee contributions on 1 or 2 payrolls while they recreated their records.

Should they answer yes or no on Schdule I Part II 4a? Surely they are not the only employer that this has happened to, where contributions were delayed through no fault of theirs. Is there a DOL exception for cases of flood, fire, or other 'act of God' type of situation?

Posted

I would agree with you. I think the DOL would agree that this was "as soon as administratively feasible". As long as they are under the maximum window of 15 business days following the month in which the deferrals are made I would check "no".

Guest LVanSteeter
Posted

What if they went over the 15 day window due to the fire?

The company is one that is often a target for staged protests and the fire may have been arson.

Is there any exception to that 15 day window?

Guest LVanSteeter
Posted

What about the "additonal ten days provided the employer notifies the participants and explains why additional time is required"?

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use