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After a payroll deduction is made for an employee's 401K contribution, how long do I have to deposit the money in the employee's 401K account?

Jan 25, 2012 by Karen from Mendham, NJ  |  Flag
1 Answer   |  3 Followers
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4 votes
Jim Blankenship Level 17

Typically this deposit should be made immediately - after all, the money belongs to the employee. The latest date that the money should be deposited in the account is set by ERISA as "no later than the 15th business day of the month following the month that the employee contributions were withheld from pay."

2 Comments   |  Flag   |  Jan 26, 2012 from New Berlin, IL
BrightScope

Great answer!

2 likes | 
Flag |  Jan 26, 2012 near San Diego, CA
Karen

Thanks. This is for someone who asked me, not my employees who I do deposit the money in their accuont asap.

Flag |  Jan 26, 2012 near Mendham, NJ

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