The Department of Labor (DOL) is taking a tough stance these days on the timely submission of employee 401(k) contributions. However, many employers are confused about when these must be submitted. Recently, the DOL sought to clear up this confusion by proposing new safe harbor regulations for when deposits should be submitted. Under the proposed regulations, plans with fewer than 100 participants need to submit employee contributions within 7 days from when the amount is received by the employer.
This article does a good job of breaking down the myths vs. truths of timely submission of employee contributions. While the regulations haven’t been finalized, plan sponsors that meet the less than 100 participants criteria should begin applying them to their plans immediately.
Further information is also available in the “Latest News” section of our Web site. If you are interested in learning more about NADART’s retirement plan products and services, please contact a NADART Representative at (800) 462-3278 ext. 7161 or e-mail nadart401k@nada.org.