Contributions: Adding Bank Account for ACH Deposit

Adding a *Bank Account for making payroll and/or annual contributions into your retirement plan

*Reminder: These instructions apply only to Contribution ACH profile for payroll and annual contributions deposited into your plan. If you need to change the bank account that is used for payment of invoices for services provided to your plan, a different process is required. Please review the article for instructions on updating your company's payment profile: Stripe Payment Tool: Adding a Bank Account for Making Payments to LRS

Please note: Late deposits penalties may apply if the ACH Profile update is delayed. 

A delay in funding employee contributions may make the contribution deposits considered late and incur late deposit correction protocol, as designated by the IRS and DOL. Below is more information regarding funding requirements as it relates to late contributions.

The Department of Labor (DOL) considers untimely contributions and loan payments to be prohibited transactions. The DOL requires participant contributions and loan repayments be deposited to the trust on the earliest date the contributions can reasonably be segregated from the employer's general assets. The DOL considers the employer's payroll frequency and the time it takes to remit FICA withholding to be relevant factors.