Verify 401(k) Pay Dates in December and January

In December and January, 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 properly towards either 2024 or 2025 for purposes of limits and nondiscrimination testing.

Here are two examples:

If your paychecks are dated December 31, 2024 or earlier: ensure the pay date in NRECA’s system is December 31, 2024, regardless of your pay period end date.

If your paychecks have a January 3, 2025 pay date and a December 27, 2024 pay period end date: Ensure that NRECA’s system shows a pay date of January 3, 2025, before submitting the contributions. Contributions from paychecks dated on or after January 1, 2025 count towards 2025 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.