Timing of contributions--what if late?

[BG5150]

We are using a prototype document. It says for the timing of contributions, they must be made by the Employer’s tax return date.

What happens if they are late? My guess is that it is an operational failure. But what is the remedy? EPCRS seems to be silent on the issue.

[Lou S.]

I'm confused. Are you talking about employer contributions like profit sharing? If they are late then then aren't deductible for that tax year. If they are more than 30 days after the due date they are part of the next year's 415 limit not the prior year. (though I think that may be different for 412 DC plans like Money Purchase).

[BG5150]

This is from the Employer Cotnributions section of the BPD:

Time of Contribution. All Employer Contributions shall be delivered to the Trustee not later than the
date fixed by law for the filing of the Employer's federal income tax return for the Year for which such
contribution is made (including any extensions of time granted by the Internal Revenue Service for
filing such return).

To me, if the contribution is not made by then, let's say 9/15, then we have an operational defect. What's the remedy? Just fund it?

[QDROphile]

If you want to add complexity to your considerations, check Field Assistance Bulletin 2008-1 wonder how that figures in.