Employee Contributions Sent in Early

[sdix401k]

With the new rules on deposits we have people starting to send contirbutions in prior to the paydate. My undertanding is that if this is done the contribution can be considered an employer contribtuion not employee deferrals.

Is the date that is important here the paydate or period ending?

For example if the employee earned the money but has not been paid yet would it be feasible to process a contribution prior to the paydate?

[rcline46]

As long as not significantly in advance of paydate, and it is from a processed payroll and checks not handed out yet, there is no problem.