401(k) Contributions
Under regulations of the U.S. Department of Labor, there are
special rules covering when employers must forward to a 401(k)
Plan those amounts the employees have elected to defer from
their wages. Section 2510.3-102 of the regulations requires
that employees' contributions be forwarded as of the earliest
date on which the monies can be reasonably segregated from the
employer's general assets. Per the Collective Bargaining
Agreement this can be no later than the 15th business day of the
month following the month during which the contributions were
witheld from the employee's paychecks. However, payments must
be made sooner if the employer can reasonably segregate the
monies before then.
To assist the employers in complying with this important
requirement, Southern California Pipe Trades Defined
Contribution Fund will accept and deposit 401(k) contributions
whenever they are forwarded by the employer. 401(k)
contributions should be reported on the "401(k) Only" Employer
Contribution Report. Remember, employers are obligated
to forward elective deferrals as soon as those monies can be
reasonably segregated. Each employer must make its own
determination of how ofthen the 401(k) contributions must be
forwarded, based on the regulations. This can mean that you must
make the payments more ofthen than once each month; you may need
to report as often as weekly.
You can request copies of the 401(k) Only Employer Contribution
Report from the Fund Office. (These forms are also available on
Excel spreadsheets. Instructions are printed on the back of each
form.) If you have any questions about forwarding 401(k)
contributions, or about either of the new forms, please contact
the Fund Office.
