Reminder: Verify 401(k) Pay Dates During December and January

In late 2023 and early 2024, as you submit 401(k) Pension Plan contributions to NRECA, remember to compare the pay date shown in NRECA’s system to the one in your payroll system. If the dates don’t match, adjust the pay date in NRECA’s system to match the pay date in your payroll system. Doing this ensures that participants’ contributions are counted towards the proper year (2023 or 2024) for purposes of limits and nondiscrimination testing. Here are two examples:

If your paychecks are dated December 31, 2023, then the pay date in NRECA’s system should be December 31, 2023, regardless of the pay period end date.
If your paychecks are dated January 5, 2024, your pay period end date is December 31, 2023, and NRECA’s system shows a pay date other than January 5, then change NRECA’s pay date to January 5, 2024, before submitting the contributions. Contributions from paychecks dated on or after January 1, 2024, count towards 2024 limits and testing.

If you have questions about this topic, call the benefits compliance team at 866.673.2299, option 7 or email us at pension.compliance@nreca.coop.