Anonymous wrote:I’m OP. I asked HR. Someone messed up but no one will admit it. It has something to do with the new payroll provider. Not good.

OP, don’t let this go. Please read this site on how late contributions are to be corrected: https://www.irs.gov/retirement-plans/401k-plan-fix-it-guide-you-have-not-timely-deposited-employee-elective-deferrals Your employer owes you lost interest and their is a voluntary correction program that they need to adhere to. Lost contributions are to be calculated from when the money should have been deposited (look at historical trends - is that usually 3 or 5 days post-payday?) to the day they are actually deposited. Plans can perform the calculation based on your exact investments (which is cumbersome) or they can use the DOL’s calculator that provides an average interest rate during that period.

I’m OP. I asked HR. Someone messed up but no one will admit it. It has something to do with the new payroll provider. Not good.

If something seems fishy you should definitely ask questions. One job I had whenever an employee took vacation time the comptroller always “screwed up” and deducted too many hours. So many people let it go and lost paid time off because the comptroller yelled at them and blamed the employees something wrong.

I haggled this dude with documentation down to the last half hour of my PTO taking it all the way to the director. That should have been a red flag.

Later, a third party auditor discovered that the comptroller was funneling the stolen PTO into fake employee accounts which of course were deposited into bank accounts owned by him and his wife.

He was convicted of embezzling over half a million from a state funded non-profit. By the time he was discovered he was running the same scam at another non-profit. I think he chose non-profits that had employees who were not financially savvy or confrontational types.

I’d take this higher just be sure you’re not being cheated. In the meantime, cut the payroll department out of managing your savings and put your money into a ROTH IRA instead.
It was

I would call everybody you can think of.
I have a friend whose husband was stiffed around 10k of his own 401k contributions by an employer. The money is gone and they aren't getting it back.

Do not assume the worst. Just nicely ask customer service at your plan and/or the payroll/HR person who does the withholdings. There's probably a reasonable explanation.

I do payroll and 401k stuff, too many people do *not* check their paystub, ignore problems, then come to me in April the following year, shocked, shocked I tell you! That something was amiss with their payroll (or 401k or whatever). Usually it's resolved when I forward back to them the email they sent where they didn't say, change their address on file with me until four months after they moved or whatever. Or the last copy of their withholding form which was only 1%, Or what have you.

I would be glad you brought your question to me in a timely manner, as long as you do so professionally and courteously, as I address my colleagues. In fact, I give goodies to people who come to ask me questions about their paystub, withholdings, etc.

Just ask.

OP, go through the communications from your HR and see if they also switched their 401k provider. Seems likely, in which case, your contributions are probably sitting in a money market account or maybe a target date fund if you are lucky. You need to go in and set it up.

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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?

It is a state system, and when I tried to escalate it I was told that because they outline this process/timeline in their written plan, the IRS allows it. Would the DOL intervene even if the IRS doesn't see it as an issue? I find it maddening, and it must impact so many people who either don't even know it's an issue or are less empowered to complain. I'd be willing to lift it up if it seemed likely to be productive, but that initial complaint left me feeling like my hands were tied.

Plan documents can state all sorts of illegal requirements. That’s why so many older plans have a million amendments to address all the required changes. Since the rules around deposits have tightened in the last 5 years, I would contact the DOL. I think it is the EBSA who handles these inquiries. In 2019, it’s completely unacceptable that the money is transferred by wire and posted within 3 days. The procedures the vendor has seen to be based around a 2-man company still using an abacus. The amount of money that participants are losing in interest is astronomical.

All the above said, it is still possible that the DOL could claim the plan is operating correctly. I would love to know how they would justify that based on their own words about speed of deposits.

My former employer would sometimes take up to two weeks to move the money (and the match) over.

It was fine, because my money eventually got transferred, but super obnoxious nonetheless.

Anonymous wrote:

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?

It is a state system, and when I tried to escalate it I was told that because they outline this process/timeline in their written plan, the IRS allows it. Would the DOL intervene even if the IRS doesn't see it as an issue? I find it maddening, and it must impact so many people who either don't even know it's an issue or are less empowered to complain. I'd be willing to lift it up if it seemed likely to be productive, but that initial complaint left me feeling like my hands were tied.