What is the deadline for depositing participants contributions and loan repayments withheld from wages?
The Department of Labor (DOL) regulations require that participant contributions and loan repayments must be separated from the employer’s assets and deposited into the plan as soon as administratively feasible. You should establish written policies and procedures with respect to remitting participant contributions, and these procedures should be followed consistently. It is extremely important that you deposit participant contributions and loan repayments immediately following EVERY pay date. You should coordinate automation of this process with your payroll provider and investment company.
The Department of Labor (“DOL”) regulations require that participant contributions and loan repayments must be separated from the employer’s assets and deposited into the plan as soon as administratively feasible. You should establish written policies and procedures with respect to remitting participant contributions, and these procedures should be followed consistently. • The DOL has established a seven (7) day deposit deadline safe harbor for plans with fewer than 100 participants. This requires that amounts withheld from wages are segregated from the plan sponsor’s assets and deposited into plan assets within 7 days from the pay date. • Plans that cover more than 100 participants must continue to make the deposit of participant contributions as soon as administratively feasible after withholding, on the pay date or within no more than one or two days from the pay date. It is extremely important that you deposit participant contributions and loan repayments immediately following EVER
