---
title: "Check the deposit of participant contributions against the segregation rule"
url: "https://ailawframework.com/practice/superannuation/check-an-employer-s-super-payment-against-the-payday-rule/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A27-PU20261022-7-US"
practice_area: "Superannuation"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Check the deposit of participant contributions against the segregation rule

> From the payroll record and the deposit record, list each payday, the date participant contributions were taken from pay, the date they were deposited to the trust, and any shorter deposit date written in the plan…

Canonical page: https://ailawframework.com/practice/superannuation/check-an-employer-s-super-payment-against-the-payday-rule/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Superannuation](https://ailawframework.com/practice/superannuation.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the payroll record and the deposit record, list each payday, the date participant contributions were taken from pay, the date they were deposited to the trust, and any shorter deposit date written in the plan document. Mark whether the plan has fewer than 100 participants. Do not decide that a deposit was timely, and do not calculate lost earnings. |
| What the lawyer must review | The lawyer decides whether the deposit met the Department of Labor timing rule and any shorter plan term. The Department's fiduciary adviser states that participant contributions must be deposited as soon as it is reasonably possible to segregate them from the employer's assets, and no later than the 15th business day of the month following the payday. If the employer can reasonably deposit sooner, it must do so. The 15th business day is not a safe harbour. The IRS fix-it guide states the same maximum, and states that the Department provides a 7-business-day safe harbour for employee contributions to plans with fewer than 100 participants. A plan term that sets an earlier deposit date must be followed. A late deposit of elective deferrals can be both a failure to follow the plan, corrected under the IRS correction program where that program applies, and a prohibited transaction. The guide states that the employer is a disqualified person, that the initial excise tax is 15 percent of the amount involved for each year, and that a further tax of 100 percent of the amount involved may apply if the transaction is not corrected. A prohibited transaction is not corrected under the IRS program. The Department's Voluntary Fiduciary Correction Program may be used. Matching and other employer contributions follow the deduction timing on the guide, not this deposit rule. The lawyer confirms the current correction procedure before a deposit is treated as late. |
| Written for | United States |
| Applies to | [Check an employer's super payment against the payday rule](https://ailawframework.com/practice/superannuation/check-an-employer-s-super-payment-against-the-payday-rule.md) |

## Checking plan

- What the AI does: From the payroll record and the deposit record, list each payday, the date participant contributions were taken from pay, the date they were deposited to the trust, and any shorter deposit date written in the plan document. Mark whether the plan has fewer than 100 participants. Do not decide that a deposit was timely, and do not calculate lost earnings.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- The 15th business day of the following month is the outer limit stated on both pages. It is not a safe harbour.
- The 7-business-day safe harbour is stated on the IRS page for plans with fewer than 100 participants. The Federal Register notice it links was not opened.

## Sources

- [IRS 401(k) plan fix-it guide: elective deferrals not timely deposited](https://www.irs.gov/retirement-plans/401k-plan-fix-it-guide-you-havent-timely-deposited-employee-elective-deferrals) (checked 2026-10-22)
- [Department of Labor ERISA Fiduciary Advisor: timely deposit of participant contributions](https://webapps.dol.gov/elaws/ebsa/fiduciary/q4e.htm) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*