401K questions

M-technik-3 · 02-22-2021, 11:59 AM

My employer pays into my account same day, but my gal's employer seems to take forever last pay period it was over 10 days and whil it may not seem like much this adds up when the money is being sent every week. That allows the employer to make interest off your money it seems for say 20 days out of the month while you get 15 days if you get paid every two weeks.

Is that legal? It probably is due to the way our gov't allows lobbyist to sway system to work for them vs the people.

Did she or I miss that in the tiny legal mumbo jumbo?

Thanks

RickFLM4 · 02-22-2021, 12:13 PM

I don’t think so. I think they have to deposit employee deferrals as soon as they are able to do so. There may be a window that is permissible - say a week at most. There is also probably a difference for employer voluntary contributions vs. employee contributions. Try googling or checking DOL or IRS website.

David70 · 02-22-2021, 01:05 PM

https://www.irs.gov/retirement-plans...each%20payday.

Department of Labor rules require that the employer deposit deferrals to the trust as soon as the employer can; however, in no event can the deposit be later than the 15th business day of the following month. Remember that the rules about the 15th business day isn't a safe harbor for depositing deferrals; rather, that these rules set the maximum deadline. DOL provides a 7-business-day safe harbor rule for employee contributions to plans with fewer than 100 participants.

M-technik-3 · 02-22-2021, 01:47 PM

She works for Saint Vincent's Hospital network. Well over a 100 employees and sounds like they are gaming the system. My former employer did the same thing as well as he stole from it.

He got a lame fine and is enjoying life with a new business. I pay attention to the details after that one.

02-22-2021, 11:59 AM	#1
M-technik-3 Lieutenant Colonel 2523 Rep 1,686 Posts Drives: E30 M3, E36 M3, 328iT, 335i Join Date: Mar 2020 Location: western Ma iTrader: (0) Garage List 1995 M3 [9.00] 2007 E91 [7.25] 1988 M3 [9.50]	401K questions My employer pays into my account same day, but my gal's employer seems to take forever last pay period it was over 10 days and whil it may not seem like much this adds up when the money is being sent every week. That allows the employer to make interest off your money it seems for say 20 days out of the month while you get 15 days if you get paid every two weeks. Is that legal? It probably is due to the way our gov't allows lobbyist to sway system to work for them vs the people. Did she or I miss that in the tiny legal mumbo jumbo? Thanks
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02-22-2021, 12:13 PM	#2
RickFLM4 Brigadier General 11913 Rep 4,874 Posts Drives: M4 Join Date: Jul 2015 Location: PB County, FL iTrader: (0)	I don’t think so. I think they have to deposit employee deferrals as soon as they are able to do so. There may be a window that is permissible - say a week at most. There is also probably a difference for employer voluntary contributions vs. employee contributions. Try googling or checking DOL or IRS website. __________________ Current: 2018 SO/SS F83 ZCP Gone: 2015 SO/SO F82
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02-22-2021, 01:05 PM	#3
David70 Colonel 1754 Rep 2,835 Posts Drives: 20 AM Vantage -13 Cadillac ATS Join Date: Apr 2012 Location: Cincinnati, OH iTrader: (1)	https://www.irs.gov/retirement-plans...each%20payday. Department of Labor rules require that the employer deposit deferrals to the trust as soon as the employer can; however, in no event can the deposit be later than the 15th business day of the following month. Remember that the rules about the 15th business day isn't a safe harbor for depositing deferrals; rather, that these rules set the maximum deadline. DOL provides a 7-business-day safe harbor rule for employee contributions to plans with fewer than 100 participants. __________________ 2006 Z4M Coupe - ZHP knob, stubby antenna, clutch delay delete
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02-22-2021, 01:47 PM	#4
M-technik-3 Lieutenant Colonel 2523 Rep 1,686 Posts Drives: E30 M3, E36 M3, 328iT, 335i Join Date: Mar 2020 Location: western Ma iTrader: (0) Garage List 1995 M3 [9.00] 2007 E91 [7.25] 1988 M3 [9.50]	She works for Saint Vincent's Hospital network. Well over a 100 employees and sounds like they are gaming the system. My former employer did the same thing as well as he stole from it. He got a lame fine and is enjoying life with a new business. I pay attention to the details after that one.
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