Legal Question in Employment Law in Alabama
Employer Holding Benefits
My employer has started a Simple IRA for employees recently, He has held the money that we have put in it from payroll deductions in his account and has not put it in the bank, can he do that?
1 Answer from Attorneys
Re: Employer Holding Benefits
An employer has normally 30 days in which to remit money to the IRA. Failure to do so can mean that an action can be had against him. Your employer is a fiduciary with respect to all monies withheld from your pay check. Those monies should not be held in any personal account of the fiduciary - that is a big no-no. If the corporate account keeps the money for the 30 days then to the best of my knowledge that shouldn't be a problem.
Call me and fill me in on the details and I would be happy to discuss this with you further.
Sterling L. DeRamus
205-458-1100
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