Deferral rate changes for money earned but not paid

[Loves401(k)]

Let's use the example of someone electing a 5% deferral rate on Wednesday April 11th.  This pay period is from Monday April 2nd through Friday April 13th.  Is it legal to do the 5% deferral on the pay check for this period that will be paid next week?

 

[WCC]

Yes it is legal. However, does your plan document restrict deferral change timing (i.e. quarterly)? The election will apply to the next pay pay date when the cash is made available - unless your document says otherwise. Below is a prior discussion on constructive receipt.