If you currently sponsor a retirement plan, you may have heard about proposed regulations by the Department of Labor (DOL) in relation to the timing of employee contributions. Under these regulations, companies with less than 100 participants will be required to deposit employee contributions to the plan within 7 business days on which the amounts would have been payable to the participant in cash.
Plan Sponsors with questions regarding these regulations and how they may affect you may want to read a informative 401khelpcenter.com article on the subject. The article is written in a question and answer format. Highlights include answers to questions such as:
• “What are the current DOL rules regarding an employer depositing employee 401k deferrals?”
• “What is the DOL trying to accomplish now?”
• “Was there anything else in this proposed amendment besides the timing of contributions?”
• “What about plans that have more than 100 participants?”
• “When are contributions late?”
• “What does it mean when contributions are late?”
Further information can also be found on the DOL Web site. As always, NADART is available to answer questions regarding this topic or any other retirement plan questions in general. You can contact a NADART Representative by calling (800) 462-3278, ext. 7161 or e-mailing nadart401k@nada.org.