Timing of contribution submissions

[Guest LSULLIVAN]

I know there are proposed regulations that will change the timing of submitting contributions to 7 - 10 days. Does nayone know if these regulations have been finalized?

[rcline46]

Not yet final, and it is 7 business days, not 7-10 days.

[Bird]

It's worth noting that...

"Before the effective date of the final safe harbor regulation, the

Department will not assert a violation of ERISA based on the general

rule that participant contributions or loan repayments become plan

assets on the earliest date on which they can reasonably be segregated

from the employer's general assets, so long as such contributions or

repayments to a plan with fewer than 100 participants have been

transferred to the plan in accordance with the 7-business day safe

harbor period in this proposal."

Full text of proposed rule:

http://www.dol.gov/ebsa/regs/fedreg/proposed/02292008.htm

[John Feldt ERPA CPC QPA]

The proposed rule does not shorten the existing requirement. It establishes a safe harbor deadline of seven business days.

If you are a small plan, and you make the deposit within the seven business days, then the DOL won't question the timeliness of the deposit.

The actual rule of ASAP still applies, but for a small plan, ASAP does not have to be earlier than that 7th business day. The rules still state that "ASAP" can never be later than the 15th business days after the end of the month in which the withholding occurs.

http://benefitslink.com/boards/index.php?s...736&hl=ASAP