Submitting Contributions and Loan Repayments
It depends. The Program is prepared to calculate your contributions based on the plan’s design, eligible employees and compensation. This will allow you to maximize all available contributions while still adhering to the contribution limits. Respond to the compliance team’s solicitation email in January to have all applicable testing performed as well as contributions calculated.
There are three ways to submit contributions:
- With a check payable to ABA Retirement Funds Program (or a wire) along with a Contribution and Loan Repayment Remittance Form.
- Via Payroll/Administration through Sponsor Web.
- Via ProgramPay, a new payroll submission procedure, also through Sponsor Web.
Based on the method you elected in your adoption agreement, you will either use the funds in the forfeiture account to offset your employer contribution costs (most common) or reallocate the funds on an annual basis to the eligible participants. The Program can assist you in calculating a reallocation if that’s the method chosen.
The Program can monitor the dollar limit for contributions (401(k) deferral limit as well as 415 annual additions limit). We can only monitor the percentage limit if we are also calculating your employer contributions for the year. If a participant does exceed one of the contribution limits, please submit a Corrective Measures for Contributions form. Use section 3A for excess contributions over the annual additions limit, or section 3B if the 401(k) deferral limit was exceeded.
Submitting Contributions and Loan Repayments
How to submit contributions and loan repayments
The Program offers two methods for submitting contributions and loan repayments:
- Payroll/Administration — an online service to report your data with the Automated Clearing House (ACH) funding, and
- Contribution and Loan Repayment Remittance Form — a paper format to prepare your contribution submissions.
Note: Participants who are enrolled via Payroll/ Administration are required to change their investment elections for future contributions. Otherwise, their future contributions will be allocated to the plan’s default investment election. If the default investment option is a Qualified Default Investment Alternative (QDIA), proper notice must be given.
Complete Information Using Payroll/Administration
Payroll/Administration is a user-friendly tool that allows you to update and fund your firm’s retirement plan online, eliminating the need to write a check. Any contributions transmitted by 4:00 p.m. ET on a business day are invested at the close of business on that day. The following paperless transactions are available:
- Transmit employee and firm contribution data
- Fund contributions via the Automated Clearing House (ACH)
- Update demographic data for participants
- Process loan repayments
- Enroll new participants into the plan
In addition to a User ID and password, to take advantage of Payroll/Administration you will also need to complete an ACH authorization form. For information on obtaining a User ID and password (and, if you wish, an ACH authorization form to submit contributions online), you can visit www.abaretirement.com and click on “Plan Administrator Login” in the upper right corner of the page. Then, click on the link for the Sponsor Web Activation Request Form in the middle of the page. The form can be completed right on your desktop, and then you will need to print it so that it can be signed. Scan the signed form (along with a copy of a voided check if you are also applying for Payroll/Administration) and email the attachment to [email protected]. It is important to note the following:
- The person who is applying for Sponsor Web access must be a named authorized plan representative;
- Only one form can be submitted per person; and
- The person requesting Payroll/Administration access must be a signatory on the firm’s bank account, and both pages 1 and 2 must be completed and signed by only that person.
Or, to receive a Sponsor Web Activation Request Form, you can also contact the Program in any of the following ways:
Send an email to [email protected]
Call the Plan Administrator Line at 800.752.6313
Inquire in writing to:
ABA Retirement Funds Program
P.O. Box 990073
Hartford, CT 06199
We will send you your confidential, secure User ID and password in separate mailings once the security testing has been completed, which can take from three to six weeks. Once you have received your User ID and password, you may access the step-by-step instructions for each of the online tools by downloading the manuals on the Administrator Login page. There are flash tutorials on Payroll/Administration and Reporting that are also available on the Administrator Login page.
Complete Contribution and Loan Remittance Form
Contribution information and funding can be transmitted to the Program by completing the Contribution and Loan Repayment Remittance Form and including a check payable to ABA Retirement Funds Program.
Use the “Contribution Remittance” Section of Contribution and Loan Repayment Remittance Form to document and send contributions to the Program
- You complete the appropriate plan and firm information.
- Contribution Type/Amounts: Complete the columns that include the contribution types allowed by your plan. Refer to your plan’s adoption agreement to determine the contribution type allowed.
Note: If you are entering information for a rollover (column R), you must complete and send a Rollover Certification Form for Individual Participant along with Contribution and Loan Remittance Form.
| For This Type of Adoption Agreement… | Only These Columns Are Applicable… |
| Standardized Defined Contribution Pension (01002) Nonstandardized Defined Contribution Pension (01005) | • Employer (F) • Rollover from Prior Plan (R) • Safe Harbor Employer Non-Elective (T), if applicable |
| Standardized Profit Sharing (01-001) Nonstandardized Profit Sharing (01-004) | • Employer Profit Sharing (F) • Rollover from Prior Plan (R) or • 401(k) Salary Deferral (A), if elected • Roth 401(k) Salary Deferral (N), if 401(k) is elected • After-Tax Employee Contributions (G), if allowed • QNEC (C), if 401(k) feature is elected • QMAC (C), if 401(k) feature is elected or • Employer Matching of 401(k) Salary Deferrals (D) or • Safe Harbor Employer Matching (P), if 401(k) safe harbor plan • Safe Harbor Employer Non-Elective (T), if 401(k) safe harbor plan or • Employer Matching (1), if Qualified Automatic Contribution Arrangement (QACA) 401(k) plan • Employer Non-Elective (5), if Qualified Automatic Contribution Arrangement (QACA) 401(k) plan |
| SIMPLE 401(k) | • 401(k) Salary Deferral (B) • Roth 401(k) Salary Deferral (N) • Safe Harbor Employer Matching (P) • Safe Harbor Employer Non-Elective (T) • Rollover from Prior Plan (R) |
How to complete the Contribution and Loan Remittance Form (page 2)
Complete the column appropriate for your plan type. (Plan Administrator)
How to complete the Contribution and Loan Remittance Form (page 3)
Complete loan repayment information. Use additional pages of this section, if necessary. (Plan Administrator)
- Note: A participant should make loan repayments by firm payroll deduction (preferred) or by personal check. Terminated participants with outstanding loans may continue to make payments if allowed by the firm. Checks should be made payable to “ABA Retirement Funds Program.” Additional payments to principal cannot be made but the participant is allowed to pay off the loan in its entirety at any time.
Loan Repayments – Use Contribution and Loan Remittance Form – Section 4, “Loan Repayment Remittance,” to make loan repayments for participants in the plan.
Deposit Summary – Complete deposit summary information to ensure accurate processing. The deposit summary shows the total contribution and loan repayments as well as the source of the contributions:
- Checks,
- Forfeitures (if elected on the adoption agreement), and
- Wire transfers.
- Contribution and loan payment remittance form, page four.
A. You complete and total the remittances.
B. You complete all deposit information. Total all deposits and ensure that the grand deposit total equals the grand remittance total.
C. You sign and date the form. Send the completed form and deposit checks to the Program.
D. Be sure to submit your check with the form.
Complete Form 2A
If you have completed any rollover amounts in column R of Contribution and Loan Remittance Form, a Rollover Certification Form for Individual Participant must be completed for each participant. This form must be sent with Contribution and Loan Remittance Form to the Program.
Retirement fund rollover certification form for individual participants.
Instructions for Completing Rollover Certification Form for Individual Participant
A. The participant completes the rollover information.
B. The participant indicates the origination of the rollover contribution, then signs and dates the form and gives it to you.
C. The Authorized Plan Representative completes the employer information that relates to the plan.
D. The Authorized Plan Representative signs and dates the form and sends the completed form, along with Contribution and Loan Remittance Form, to the Program.
E. The participant must sign and date the form, then send it to the Authorized Plan Representative for signature.
Complete Notification of Contributions/Loan Repayments by Wire Form
If a contribution or loan repayment is to be transmitted by wire, you must complete a Notification of Contributions/Loans Repayments by Wire. For wire transfers, the Program must receive these forms no less than 48 hours before the funds are wired. If advance notice of wire instructions is not provided, there could be a delay in crediting the contributions/loan repayments.
Notification of contributions/loan repayments by wire form.
Instructions for Completing Notification of Contributions/Loan Repayments by Wire Form
A. The Authorized Plan Representative completes the employer information.
B. The Authorized Plan Representative completes the wire information.
C. The Authorized Plan Representative signs
and dates the form.