Employer Match Contribution Deadline

[Guest szaidman]

Is there a deadline by when a company must match their employees deferrals in a safe harbor plan?

[Tom Poje]

yes.

oh, you probably want the low-down as well. 12 months after plan year end. 1.401(k)-3(h)(1) If I recall, if match is done on a payroll basis, then by end of quarter following, but I am too lazy to look it up.

[Archimage]

Added note: to be deductible for the given plan year, must be deposited by the due date of the corporate tax return.

[Tom Poje]

oh, and to top that, if matches are deposited after 12 months then they are treated as nonelective contributions and as if they were the only nonelective contributions.

1.401(m)-2(a)(5). I would assume that applies to safe harbor contributions as well.

you would have to pass a(4) testing, which could get interesting if you had to cross test and therefore also provide a gateway minimum!

[R. Butler]

oh, and to top that, if matches are deposited after 12 months then they are treated as nonelective contributions and as if they were the only nonelective contributions.

1.401(m)-2(a)(5). I would assume that applies to safe harbor contributions as well.

you would have to pass a(4) testing, which could get interesting if you had to cross test and therefore also provide a gateway minimum!

Thats it. You've answered a question I posed in a different post. 401(a)(4) is what happens when deposits are made more than 12 months after the plan year. I knew they were not counted in ADP/ACP, but for whatever reason I failed to read a few lines down where it says test under 401(a)(4).

Fortunately our clients aren't that tardy with deposits & the issue doesn't arise. If it ever does though, now I know.