Employer started a Simple IRA in 1999, and has never matched!

[Guest CDAVIS]

In 1999 my employer started a Simple IRA. In the body of the "Employee Notice" it reads:

" For 1999, your employer will (employer to complete) {which he did}

match your elective contributions up to 2% of your compensation"

But he has NEVER made a contribution. Is this legal? What are my rights? Does the employer face any penalties & fees? If anyone has any info on this I would greatly appreciate it. Thank you.

[rcline46]

First, ask your employer nicely if he 'forgot' to put in the match. Don't threaten or be nasty, do it privately.

If you have problems, then contacty your local DOL/PWBA office for advice. They may follow up. You may be put under pressure. However, you cannot be fired for exercising your ERISA rights. Its a VERY nasty lawsuit against your employer by the Feds if he does retaliate.

[Guest CDAVIS]

Thanks for the info. There is a liitle catch, I left the company in November of 2000. Do I still have any recourse?

[rcline46]

Still ask nicely. If former boss is recalcitrant, mention your only other solution is to go to the DOL and ask them to check on the contribution.

Good luck.

[wmyer]

Just a thought -- the employer has until his income tax filing deadline (plus extensions) to fund the nonelective. If he has a fiscal year running from 12/1/1999 to 11/30/2000 and started the plan in 1999, his filing deadline isn't until 2/15/2001 (and, with extensions 8/15/2001). If you didn't start contributing until after 12/1/1999 and he's doing the match, he's not even necessarily late.

[Guest CDAVIS]

Thanks for the info. I believe that the fiscal year is Jan 1 to Jan 1. Also the plan was started in either Feb or Apr of 1999.