The Department of Labor (DOL) recently issued a safe harbor rule aimed at protecting employee contributions to benefit plans subject to ERISA with fewer than 100 participants.
Effective January 14, 2010, employee 401(k) contributions and loan repayments to these “small” plans must be deposited by plan sponsors no later than the seventh business day following the payroll date.
Currently, this ruling does not extend to plans with more than 100 participants. However, large plans must still comply with the prior deposit rule and plan sponsors may be subject to a faster deposit requirement.
Elliott Davis is here to help you evaluate, interpret and implement this new requirement. Please contact Terri McNaughton, Employee Benefit Plan Practice Chair, at 864.552.4740 or email@example.com for assistance.
To read the press release from the Department of Labor, click here.