401(k) Plans | Timeliness of Remittances
Published on by Brad Sack in Benefit Plan Audits, Video
Can’t watch the video? Get the transcript.
In this short excerpt from the latest 401(k) Plan Management Study reveal event, top employee benefit plan auditor Brad Sack explains timeliness of remittances – and a big DOL watchout you must know.
Key points on 401(k) plan remittances
Here are a few highlights from Brad’s overview.
The timeliness of remittances (in short, the number of days between when payroll occurs and when the withholdings are remitted to the investment custodian) is an area of focus for the Department of Labor (DOL).
The DOL expects remittances to be made as soon as administratively possible, though they don’t specify a precise timeline (in a recent video from our Employee Benefit Plan Audit series, leading employee benefit plan auditor Dan Holthaus explains).
Most of the participants in the study were found to be remitting contributions quickly.
One key callout? Inconsistency in remittance timing, even if generally timely, could be interpreted by the DOL as some remittances being late. Consistency is key.
