What is the deadline for depositing elective deferrals?
Rev. 11/20/03 E-mail Alert 2003-22

Click here for updated information based on the Deferral Deposit Final Regs, which were issued January 14, 2010.

Department of Labor Regulations (2510.3-102) require an employer to deposit elective deferrals in the plan’s trust:

a. “As of the earliest date on which such contributions (elective deferrals withheld from payroll) can reasonably be segregated from the employer’s assets, or

b. In no event, later than the 15th business day of the month following the month in which the participant contribution amounts are received by the employer or the 15th business day of the month following the month in which such amounts would otherwise have been payable to the participant in cash (in the case of amounts withheld by an employer from a participant's wages).”

However, DOL auditors have made it clear that the 15-business-day rule is not a safe harbor. The true deadline for making deposits is the earliest date elective deferrals can be segregated from employer assets, even if that date is fewer than 15 business days after deferrals are made. Click here for an article on the subject.