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Timely deposits of pick up contributions


Guest Patti
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Guest Patti

Are there any federal rules on timely deposits that would apply to pick-up contributions? Would it make a difference if the pick up contributions were made directly by the employer or by withholding them from the employees' pay?

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No. From a federal perspective, pick-up contributions are treated as employer contributions, even if there are corresponding wage reductions to finance them. And the federal laws governing the timing of employer contributions don't apply to governmental plans (which are the only kind of plans that can have pick-up contributions). If there are restrictions, they would have to come from state law, not federal.

Employee benefits legal resource site

The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

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