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Frequently Asked Question

How soon does my employer have to deposit my contributions deducted from my pay into my 401k account?

Answer: Government regulations require that participant contributions to a 401k be deposited to the plan on the earliest date that they can be reasonably segregated from the employer's general assets, but in no event may they be deposited later than the 15th business day of the month following the month in which the participant contributions are deducted from their pay. What this DOESN'T mean is that your employer can wait until the 15th business day of the month following the month in which your contribution was deducted just for the convenience of doing so. If they can deposit the funds in one or two days, they must do so.

See the following additional information and articles:

Timing on the Deposit of Employee Contributions

Your Contributions: The Long Day's Journey Into ... Your 401k

Contribution Timing and Collection Responsibility, a Q&A

This is for educational purposes only. The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice. Consult your financial, tax or legal advisor regarding your own unique situation and your company's benefits representative for rules specific to your plan.


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