401k deposit

401(k) Deposit Rules & Bonus Elections

June 21, 2017

401(k) Deposit Rules

When an employer withholds employee contributions (including 401(k) contributions, Roth 401(k) contributions, and loan payments) from an employee's pay, the monies must be segregated from the employer's assets and deposited into the plan.

Employers are required to deposit employees contributions that are withheld from an employee's pay to the retirement plan as soon as administratively feasible, or by 7 business days after the date they were withheld in order to be deposited timely.