Stock sale - contribution

[PS]

Hi, 

Plan is terminating due to stock sale - the sale date is 05/13, the plan will terminate by 05/12.  The term date is 5/12 (thurs)  and pay date is 5/13 (Fri) terminating plan will  deduct/withhold the contributions on 5/10  (tues) I believe they can still post to the term plan since the deductions were withheld prior to the term date correct? or is it pay date driven?

Thanks

[Peter Gulia]

If the employer, without waiting for Friday’s payment of after-reductions net wages, processes the wage reductions on Tuesday, why not pay over the contributions on Tuesday (or on Wednesday morning)?

[PS]

On 4/1/2022 at 10:28 AM, Peter Gulia said:

If the employer, without waiting for Friday’s payment of after-reductions net wages, processes the wage reductions on Tuesday, why not pay over the contributions on Tuesday (or on Wednesday morning)?

Current pay period 05/01/202022 – 05/15/2022 – The plan is terminating effective 05/11/2022 and hence the contribution should only be for the days from 05/01-05/11.  but I'm not sure how the short plan year will be calculate

[Luke Bailey]

On 3/31/2022 at 2:08 PM, PS said:

Hi, 

Plan is terminating due to stock sale - the sale date is 05/13, the plan will terminate by 05/12.  The term date is 5/12 (thurs)  and pay date is 5/13 (Fri) terminating plan will  deduct/withhold the contributions on 5/10  (tues) I believe they can still post to the term plan since the deductions were withheld prior to the term date correct? or is it pay date driven?

Thanks

I agree. The plan had to be "alive" to have amounts deferred under it, but even terminated plans need to collect contributions owed, investment income, etc. while they are winding up.