Where are my 401K Contributions?

[Anonymous]

I rarely log into my 401K account, but did so today. On January 1, my employer switched to a new HR payroll provider. The last contribution into my 401K was dated 12/30/18. This means two January contributions and one from February are missing. Is this legal? How long does an employer have to move money into the account?

[Anonymous]

Check your paystub. Is money taken out?

[Anonymous]

Anonymous wrote:Check your paystub. Is money taken out?

Yes, money is being taken out.

[Anonymous]

I would call the company administering the 401k and find out from them whether the contributions were made. Only after that would I contact HR.

[Anonymous]

If they just switched they could be working out the kinks still. I’d call to follow up, but I wouldn’t panic yet.

[Anonymous]

Your first phone all should be to hr.

[Anonymous]

Call HR or whom ever administers your fund tomorrow morning.

[Anonymous]

Internet strangers cannot answer your question.

[Anonymous]

Anonymous wrote:I rarely log into my 401K account, but did so today. On January 1, my employer switched to a new HR payroll provider. The last contribution into my 401K was dated 12/30/18. This means two January contributions and one from February are missing. Is this legal? How long does an employer have to move money into the account?

1. What they are doing is most likely not legal.
2. How long to deposit depends. The rules around 401k deposits say as soon as the company can separate the contributors from general assets. The “as soon as” date can be established by historical trends. However, if the plan is under 100 employees there is a safe harbor provision allowing up to 7 days post-payday to contribute. https://www.archerlaw.com/timing-of-401k-deposits/

Are you sure that when the company changed payroll providers, they didn’t also change 401k providers? Some small firms use the vendors associated with their payroll service, such as ADP.

[Anonymous]

Higher chance op is missing something than her employer doing something questionable

[Anonymous]

Anonymous wrote:

Anonymous wrote:I rarely log into my 401K account, but did so today. On January 1, my employer switched to a new HR payroll provider. The last contribution into my 401K was dated 12/30/18. This means two January contributions and one from February are missing. Is this legal? How long does an employer have to move money into the account?

1. What they are doing is most likely not legal.
2. How long to deposit depends. The rules around 401k deposits say as soon as the company can separate the contributors from general assets. The “as soon as” date can be established by historical trends. However, if the plan is under 100 employees there is a safe harbor provision allowing up to 7 days post-payday to contribute. https://www.archerlaw.com/timing-of-401k-deposits/

Are you sure that when the company changed payroll providers, they didn’t also change 401k providers? Some small firms use the vendors associated with their payroll service, such as ADP.

This. Go through your email and see if you can find one about a new 401k provider. If not, then reach out to HR tomorrow.

[Anonymous]

Anonymous wrote:Internet strangers cannot answer your question.

This. But I will say that this is standard (and incredibly irritating) for my employer. My last contribution was Jan 2nd for a November 30 payroll. The Dec 28 and Jan 31 payrolls both had withholdings, but haven't yet been deposited. It makes me nuts but there doesn't seem to be much that anyone can do to expedite it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Internet strangers cannot answer your question.

This. But I will say that this is standard (and incredibly irritating) for my employer. My last contribution was Jan 2nd for a November 30 payroll. The Dec 28 and Jan 31 payrolls both had withholdings, but haven't yet been deposited. It makes me nuts but there doesn't seem to be much that anyone can do to expedite it.

Your company is violating IRS requirements. You should contact the Dep of Labor about this since it’s a pattern.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Internet strangers cannot answer your question.

This. But I will say that this is standard (and incredibly irritating) for my employer. My last contribution was Jan 2nd for a November 30 payroll. The Dec 28 and Jan 31 payrolls both had withholdings, but haven't yet been deposited. It makes me nuts but there doesn't seem to be much that anyone can do to expedite it.

Your company is violating IRS requirements. You should contact the Dep of Labor about this since it’s a pattern.

Unfortunately this a public sector 403(b) and they are sadly within the letter of the law, which just require that it be deposited in a timeframe that is "not longer than is reasonable for the proper administration of the plan." (The employer transfers the funds to a third party provider who then deposits the funds into the 403(b) that the employee has chosen, which purportedly takes 4-6 weeks since they do it all with paper checks that have to be issued and then clear before the next check can be issued--WTF?!?) Ask me how I know this...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Internet strangers cannot answer your question.

This. But I will say that this is standard (and incredibly irritating) for my employer. My last contribution was Jan 2nd for a November 30 payroll. The Dec 28 and Jan 31 payrolls both had withholdings, but haven't yet been deposited. It makes me nuts but there doesn't seem to be much that anyone can do to expedite it.

Your company is violating IRS requirements. You should contact the Dep of Labor about this since it’s a pattern.

Unfortunately this a public sector 403(b) and they are sadly within the letter of the law, which just require that it be deposited in a timeframe that is "not longer than is reasonable for the proper administration of the plan." (The employer transfers the funds to a third party provider who then deposits the funds into the 403(b) that the employee has chosen, which purportedly takes 4-6 weeks since they do it all with paper checks that have to be issued and then clear before the next check can be issued--WTF?!?) Ask me how I know this...

Do you have an opinion letter from the IRS or DOL approving the deposit method and the 4-6 week timeframe?