Author Topic: Employer taking awhile to complete 401k contribution...  (Read 971 times)

ardrum

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Employer taking awhile to complete 401k contribution...
« on: March 02, 2017, 10:33:00 AM »
I've been working for my employer since mid-2015.  Ever since I've contributed to the 401k plan (paid every other Friday, 26 pay periods), I've noticed that the actual transaction has occurred the following Monday.  This is fine, and it's never varied until now.

My last paycheck was Friday, 2/24, and as of today (Thursday, 3/2), the contribution has not yet occurred even though my pay stub has the correct amount listed for the contribution.

I emailed the Benefits department today to ask about the situation, but as of now they have not responded.  I printed documents out and highlighted the relevant dates and values to show the discrepancy in case I'm questioned.

I'm kind of getting nervous though with no response being made yet and now 4 business days out with no contribution when they've previously shown capability to take just 1 business day with no exceptions.

Should I just keep waiting for a response for the next few days?

Cali Nonya

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Re: Employer taking awhile to complete 401k contribution...
« Reply #1 on: March 02, 2017, 10:56:22 AM »
Just keep waiting.  If it's not resolved by the next pay period then go back to the benefits department. 

ReadySetMillionaire

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Re: Employer taking awhile to complete 401k contribution...
« Reply #2 on: March 02, 2017, 11:14:47 AM »
I think you're checking your 401k too often if you are even noticing this.  I'm also guessing you feel like you are missing out on this week's market gains (Monday through Wednesday), which is causing some aggravation.

I'd stop paying attention to the market and your 401k. 

My 401k gets deposited monthly (even with the same pay periods as you).  I wouldn't know for sure, but I'm certain this delay has caused me to miss gains and miss losses.  In the end, it always evens out, so I stopped caring a while ago.

Axecleaver

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Re: Employer taking awhile to complete 401k contribution...
« Reply #3 on: March 03, 2017, 05:38:11 PM »
Check out the plan rules. If the deposit timelines aren't defined, it's generally 7 days, but can be up to 30 days in some cases. When I set up my plan (I own a consulting business), the benefits advice I got was to make them within 7 days of the payroll date.

https://www.irs.gov/retirement-plans/401k-plan-fix-it-guide-you-have-not-timely-deposited-employee-elective-deferrals

"Department of Labor rules require that the employer deposit deferrals to the trust as soon as the employer can; however, in no event can the deposit be later than the 15th business day of the following month. Remember that the rules about the 15th business day isn't a safe harbor for depositing deferrals; rather, that these rules set the maximum deadline. DOL provides a 7-business-day safe harbor rule for employee contributions to plans with fewer than 100 participants."