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457b Contributions

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Does any know how long an employer has to send the your 457b contribution to a fund custodian once it has

been deducted from your payroll check ?

 

Thanks

Tom

 

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Assuming a governmental

 

If the plan is governmental, it is subject to Regs. Section 1.457-8(a)(2)(ii), "Amounts deferred under an eligible governmental plan must be transferred to a trust within a period that is not longer than is reasonable for the proper administration of the participant accounts (if any). For purposes of this requirement, the plan may provide for amounts deferred for a participant under the plan to be transferred to the trust within a specified period after the date the amounts would otherwise have been paid to the participant. For example, the plan could provide for amounts deferred under the plan at the election of the participant to be contributed to the trust within 15 business days following the month in which these amounts would otherwise have been paid to the participant." The 15 business days after the month is, not coincidentally, the DOL's rule for when 401(k) deferrals have to be transferred to the 401(k) plan, so it is usually treated as an outside time limit.

 

Tom Geer

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