Not accepting new 403(b) contributions

[Guest Statler]

Plan's (custodial account) current vendor will no longer be administering/accepting 403(b) contributions starting 1/1/09 and the plan will not be set up with the new company until 2/1/09. What options would this plan have? Do they have to suspend deferrals until the new account is set up or can they hold the deferrals in some sort of cash mangement account and deposit into new account as soon as it is set up? Will the fact that there is no custodial account to deposit the assets into count towards making the deposit as soon as administrativly feasable?

Thanks

[J Simmons]

What are the paydays of the ER in 1/09? Is it an ERISA 403b plan?

You might simply be able to wait until 2/1/2009 and remit the payments to the new vendor. That would be by the 15th day of the month following the month of the paydays in question. For a late 12/09 payday, get those deferrals sent off to the old vendor no later than 12/31/09.