When Should the Check be in the Mail?
In this issue:
Every qualified retirement plan has a specific deadline by which employer contributions must be deposited to the plan for each plan year. However, the rules concerning participants' contributions have not been as clear. For example, in 401(k) plans, employees typically defer a portion of their weekly or biweekly paychecks. How soon should these contributions be deposited into the plan?
The question of when participant salary deferrals must be deposited into the plan is a long-standing issue and one about which the Department of Labor (DOL) has been quite vocal. The DOL has also been very active and aggressive in its enforcement in this area. Fortunately, final regulations issued earlier this year have provided welcome guidance for plans sponsored by small employers.
This newsletter is intended to provide general information on matters of interest in the area of qualified retirement plans and is distributed with the understanding that the publisher and distributor are not rendering legal, tax or other professional advice. Readers should not act or rely on any information in this newsletter without first seeking the advice of an independent tax advisor such as an attorney or CPA.