contributions and excise tax

[lexi]

The DOL regs say that 401(k) contributions have to be remitted as soon as is administratively feasible but not later than 15 days of the month following the month in which contributions were made. i understand that the DOL reg is not a safe harbor.

could you pls confirm the following:

1) assume that an employer COULD HAVE remitted the contributions earlier but did not until the 15th of the following month. that would be a "prohibited" transaction under the code and the employer would be assessed excise taxes after filing form 5500, even though the ER is still withing the DOL's 15 days timeframe.

2) suspend your disbelief and assume that an ER could NOT have remitted the contributions anytime earlier than the 15th day of the following month, the ER would NOT be considered to have been engaged in a prohibited trnxn and would not be assessed the excise tax.

yes? no?

thanks.

[WDIK]

1) Contributions would be considered late.

2) [suspending belief] Contributions (chuckle) would (snicker) not (guffaw) be (har-de-har) considered (chortle) late (giggle). [Doubled over with laughter]

[Guest Pensions in Paradise]

HAHAHAHA. Show me an employer who qualifies for the 15th day of the following month rule and I'll show you a flying pink elephant.