Timing of Matching Contribution Deposits

[Guest Grumpy455]

By what date must a 403(b) sponsor deposit a discretionary matching contribution for a plan year?

For instance, assume a calendar year, plan year. The 403(b) sponsor calculates the match based on each pay period, but does not deposit the matching contribution for the 2004 plan year until March 1, 2005. Is that OK? What if the deposit was not made until July 1, 2005? Or September 1, 2005? Or December 15, 2008?

I cannot locate any funding due date for 403(b) employer contributions. Thanks in advance for your help.

[Guest Grumpy455]

Well, either I have asked a question that is so obvious, the other group participants are embarrassed to remind me of the rule or everyone else is as confused about the answer as I am. Despite the fact that I cannot locate an answer in, for example, the Tax Management Portfolio's 403(b) edition (which seems odd to me), I thought the question was rather simple and straightforward. Any clue as to the deposit due date is greatly appreciated.

[Archimage]

I think this will answer your question from Treas Reg 415-6(b)(7)(ii) --

"For purposes of this subparagraph, employer contributions shall not be deemed credited to a participant’s account for a particular limitation year, unless the contributions are actually made to the plan no later than 30 days after the end of the period described in section 404(a)(6) applicable to the taxable year with or within which the particular limitation year ends. If, however, contributions are made by an employer exempt from Federal income tax under section 501(a), the contributions must be made to the plan no later than the 15th day of the sixth calendar month following the close of the taxable year (or fiscal year, if no taxable year) with or within which the particular limitation year ends."

[Guest Grumpy455]

Thanks!

[wmyer]

Yes but the proposed 415 regulations change this to the 15th day of the tenth month! Although they cannot be relied upon yet....

[Guest crosseyetester]

On the theme of 403(b) employer match deposits, I have another question.

A plan has been depositing the match on a twice monthly payroll basis, but they would like to stop mid-year and deposit the remaining contribution at a later date, preferably the beginning of next year after the final annual amount is calculated. Can the plan make this switch?

Whatabout if it were a 401(k) Plan?