Sending Contributions to the Program
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.
Sending Contributions to the Program
How to send contributions to the program
There are two ways to send contributions to the Program: by check through the mail or by wire transfer through a financial institution.
Sending contributions by check
If you send a check, make it payable to “ABA Retirement Funds Program.” You must submit to the Program the following:
- Contribution and Loan Repayment Remittance Form (after signing as Plan Administrator),
- Check (or wire using Notification of Loan Contributions/Repayments by Wire Form),
- If there have been rollover contributions, Rollover Certification Form for Individual Participant Form, and
- If there have been contribution corrections, Corrective Measures for Contributions Form (see Making Corrections).
Sending contributions by wire transfer
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 may be a delay in crediting the contributions/ loan repayments.
Forward the completed Contribution and Loan Repayment and Remittance Form and all deposit checks, or Notification of Loan Contributions/Repayments by Wire Form or, if applicable, Rollover Certification Form for Individual Participant Form and Corrective Measures for Contributions Form to the Program to one of the addresses listed here. (link to contact page)
Contribution processing & due dates
Contribution remittances and loan repayments processed at the close of business by the last business day of the quarter will be reflected on the participant’s quarterly statement. Quarterly statements are mailed within 10 business days after the end of each quarter.
The firm’s contributions for the plan year should be sent to the Program no later than the date (including any extensions) for filing your firm’s federal income tax return for the firm’s fiscal year that ends within the plan year, or the last day of the plan year, whichever is later. For participant contributions such as 401(k) pre-tax elective contributions, Roth 401(k) contributions or voluntary after-tax contributions in plans with fewer than 100 participants at the beginning of the plan year, send the contributions to the Program as soon as possible but no later than the 7th business day following the day in which the contributions were withheld from the participant’s pay by the firm. For plans with 100 or more participants at the beginning of the plan year, send the contributions to the Program as soon as possible but no later than the 15th business day of the month following the month in which the contributions were withheld from the participant’s pay by the firm. Please note that these delivery requirements also apply to loan repayments made through payroll deduction.