Excerpt: Final Treasury Regulations under IRC ?? 401(k) & (m) impose new stringent timing requirements on the contribution of matching contributions. Amounts cannot be contributed to fund matching contributions before the employee completes the deferral election or performs the underlying service that relates to the deferral. IRS recently ruled that this timing requirement also applies to the transfer of surplus assets from a terminated defined benefit plan. Transferred surplus assets cannot be used to provide matching contributions if the assets are contributed before the employee completes the deferral election or performs the underlying service.

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