Employer Matching Deposiet Time Limits?

[Guest TYounkin]

My employer gives the employees their 401(k) employer contribution match usually just once a year. My question , Is the employer restricted to a time limit as to when to deposit such funds? I am guessing the limit to be either 6 months or 1 year but I really don't know. Thanks

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[Dan]

Employer contributions should be made by the Employer's tax return filing deadline, including filing extensions. For example, a corporation could fund a matching contribution in September 1999 for a 401(k)plan whose plan year ended 12/31/98, and this would be considered a timely matching contribution.

[Guest TYounkin]

Thanks Dan, I guess another question would be, What is the latest date an employer could file their taxes? Can they keep on filing extensions?

[Dan]

I can not answer that question. An accountant or tax attorney would need to answer. I do not do income tax filing.

[Guest RS Vatalaro]

What form of entity are we talking about (corp, partnership, etc)? I'm a CPA and can answer your question about tax deadlines.

Thanx.

[Guest Robert Collins]

I agree with the earlier responders to this question but I add that the plan document may impose an earlier payment deadline. For example, the plan document could require that matching money be contributed each pay period. If the employer does not follow the plan document the plan is out of compliance.

[Guest TYounkin]

Thanks for all these responses. I work for a small company with about 80 employees participating in the 401(k) plan. Last year my employer did file an extension; I do not know the reasons. My 1997 employer matching contributions were deposited on 4/29/98 which I guess isn't too bad. It's unfortunate that I receive my employers contribution only once a year. I'll check the plan document again, but I am pretty sure nothing is stated there that would answer these questions.