Employer time requirements to transfer from paycheck to 401(k)
Are there any rules or requirements as to a time frame of when money is removed from a paycheck and when the money is posted into a retirement account?
My current 401(k) receives funds from my paycheck once a month or every few weeks, not really a specific pattern. However I receive two paychecks a month. I am a bit confused as to why the money is not posting sooner.
Is it normal to have contributions be pulled from paychecks, sit and be posted together?
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I found this website for some ammo if you need it. For plans with less than 100 participants the limit is 7 days after deduction from your paycheck, though an extension is possible with some paperwork. A DOL audit would probably land your employer in some trouble if they are regularly taking 4 weeks to deposit your funds in the 401k account.
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