When to Send Elective Deferrals to a Vendor

Q. When must the plan sponsor send elective deferrals to the vendor?
 
A. The 403(b) plan sponsor must send elective deferrals to the vendor within an administratively feasible period (generally, within 15 business days following the month in which these amounts would have been paid to an employee).

 

However, a 403(b) plan subject to ERISA should review the Department of Labor’s rules for a potentially shorter time-frame for forwarding elective deferrals to the vendor.