What Making a Contribution Means in Meeting a Deadline

Q. Contributions for the calendar year have to be in by Dec. 31. Does that mean post-marked Dec. 31 or actually deposited into the account by Dec. 31?

A. If you are referring to elective deferrals, those contributions must be withheld from salary by the end of the year that ends Dec. 31, but the deposit might actually be in the next year; that is, the one that begins after Dec. 31. 

For example, if the last paycheck in 2021 is Dec. 30 or 31, the deferral would be withheld timely from salary by the end of the year and then it is sent to the vendor, who may receive this contribution in the first week of 2022.