The safe harbor rule

The Department of Labor (DOL) regulation 29 CFR 2510.3-102 provides a seven (7) business day “safe harbor” rule for plans with fewer than 100 participants at the start of the plan year. Under the Safe Harbor rule, plans are considered to have made timely deposits of deferral contributions if they are placed in the plan trust within seven (7) business days from the date they are withheld from wages.

For plans with 100 or more participants, there is no safe harbor rule.