Timely Deposit of Employee Contributions Enforced
Posted 12-2-2010 | By Christine Bentson | Download Article
As a follow-up to the notice we distributed in early 2010 regarding depositing employee contributions to retirement plans as early as possible, the Department of Labor recently announced civil and criminal enforcement. The announcement enforces the timely deposit of employee contributions to retirement plans. Plan sponsor contributions for small plans (less than 100 participants) are considered timely if they are remitted as soon as possible but in no event later than seven business days from the date they can be segregated from the employer's general assets (i.e. withheld from the employee's wages); large plans (100 or more participants) are required to deposit as soon as possible after withholding. Any contributions after this timeline subject the plan's fiduciaries to liability.
Please contact Christine Bentson, CPA, RPA, CEBS, at cbentson@hlbtr.com or 651-407-5808 if you have any questions regarding the timeliness of these types of contributions.
For a summary of the civil and criminal enforcement and fact sheets with more information, please visit http://www.dol.gov/ebsa/newsroom/ECI/main.html.