Safe Harbor Match - Is required funding every 3 mo. period

[Guest Kconsultant]

I thought I had read that a SH Match has to be funded at least every 3 months? Yes or No -- If yes, can the Adoption Agreement use the Plan Year "calculation" method?

[pmacduff]

Our Corbel prototype allows us to choose, i.e., per payroll, monthly, quarterly, annually, etc. This is Employer $, so I don't know why the client would be forced to contribute quarterly...

[maverick]

On page 11.424 (par 5.d.3)of the 2004 ERISA Outline, Sal says:

"Normally, matching contributions made to a safe harbor 401k plan must be deposited no later than 12 months afte rthe close of the plan year... However, if the plan uses the payroll period method, the match for elective deferrals and employee contributions made during a plan year quarter must be deposited no later than the last day of the next quarter. See Q&A-2 of IRS Notice 2000-3 and prop treas res 1.401(k)-3©(5)(ii)."

I remember reading this when studying for a QKA exam last summer -- gee, I actually learned something.