Employer Retirement Contributions

[JustaDrone]

What is the name of your state? Wisconsin

We have a 408(k) SEP at my place of employment. Our employer contributes monthly. This past year the employer has NOT made contributions in 3 months so far. All other months have been the same amount as per the benefit (10%). So employees are currently out that amount plus interest. While it is certainly problematic and I believe unethical (they never asked or notified employees), is it legal? Pay stubs still show the full benfit amount has been contributed.

This is a small office, 15-20 employees.

Thank you

 

[Beth3]

1. Are the contributions GUARANTEED?

2. What does the Plan Document say regarding the timing of the employer's contributions? I'm not familiar with 408(k) reg's but 401(k) reg's allow for a considerable amount of lag-time.

 

[JustaDrone]

We are non-union and in an 'at-will' State. Our Employee manual states the employer will contribute 10%. That would be the only guarantee I know of.

I do not know what the plan states, have never seen it.

 

[anteater]

We are non-union and in an 'at-will' State. Our Employee manual states the employer will contribute 10%. That would be the only guarantee I know of.

I do not know what the plan states, have never seen it.

The only dealine for contributions to SEP-IRA's is the due date of the employer's tax return (including extensions). Under a SEP, the employer is not required to make conributions every year.

The employer is required to give each eligible employee a copy of Form 5305-SEP.