401k Employer Requirements for Sending Money to Investment Company

[Guest tpowell]

I am looking for information concerning the

Employers Legal Requirements for sending funds taken out of a paycheck into the Investment Company. I know of an employer who tends to hold onto the money witheld from employees for a long period of time.

I have tried to find this information on the internet but I have not had any luck. A link on the internet would be very nice

Thank you in advance.

[Lynn Campbell]

You might want to look at: "Late 401(k) contributions" on the "Retirement Plans in General" message board, which relates to your question.

[Guest Mike Kimball]

see DOL regulation 2510.3-102 for the rules on this

[Guest]

The general rule is 15 days or as soon as possible. If the employer is not doing this you should contact your nearest Pension and Welfare Benefits Administration Field Office (http://www.dol.gov/dol/pwba/)

[MWeddell]

The regulation is here:

http://www.dol.gov/dol/allcfr/Title_29/Par...R2510.3-102.htm

The regulation isn't too long and is more readable than the average government regulation in my opinion. I'd paraphrase it by saying that 401(k) contributions must be deposited as soon as they can reasonably be segregated from the employer's general assets but no later than 15 business days after the end of the month during which they were deducted from an employee's paycheck. However, you'd be better off to read the regulation than to rely on any of our paraphrases.

[This message has been edited by MWeddell (edited 01-05-2000).]