Homestead Advisers Deferred Compensation: Making Deposits

How do I make deposits to the account? Do we submit money all at one time or can we submit more than one deposit in a year?

• Deposits to deferred compensation accounts should come from a cooperative account, not from the participant. Money can be submitted by Direct Deposit ACH, FedWire or check. Instructions for each method are available on the Employer Instructions to Submit Funds.

• Our preferred method is to receive money by Direct Deposit ACH because the money goes directly into the participant’s account and fund, which can help minimize errors. There is also less paperwork for the cooperative because with Direct Deposit ACH, you do not need to submit a Group Purchase Form. Fedwire and check deposits require that you provide a Group Purchase Form for Contributions to Deferred Compensation Plan Accounts with each deposit.

• Encourage your participants to establish an Asset Allocation Model to make payroll easy! When a model is in place, the model directs payroll allocations into the account and any allocation changes are controlled by the participant. After the account is established, the participant can add a model online after logging into their account or the cooperative can submit the Asset Allocation Model Form on the participant’s behalf. When you submit your payroll you’ll just need to include “555” as the Homestead Funds fund number and the amount instead of each Homestead Funds fund number and amount separately.