Employer has stopped contributing to my Simple IRA but still takes money

[RobC.]

What is the name of your state (only U.S. law)? CA

Hello Everyone,

My employer has pretty much stopped paying into and matching my contributions to my simple IRA but still takes money out of my checks. I presume because he is going to pay into the account at a later date. I was wondering what laws he is breaking and what action I can take? Also, if I can demand interest on the money not added? the company is located in ventura, ca.

Thanks,
Rob C.

 

[davew128]

The employer is supposed to deposit the money within 15-30 days after the end of the month in which it was withheld from you (depending on the number of play participants). The match isn't required to be paid in until the extended due date of his tax return (which is months away).

A SIMPLE IRA while not a true pension plan, is subject to DOL and IRS oversight. Failure to timely deposit funds can result in a penalty to him, and one of the things DOL would do is determine a market rate of return on the undeposited money and require him to pay that in as well.

 

[RobC.]

I appreciate the quick response. Is there anyway I can calculate this by myself in order to avoid reporting him but still get my interest?

Rob

 

[davew128]

I appreciate the quick response. Is there anyway I can calculate this by myself in order to avoid reporting him but still get my interest?

Yes, it's called a financial calculator and understanding IRR.

But even if you could calculate it yourself, not using the DOL to do it is going to hurt you. Just trust me on this.

 

[RobC.]

Davew,

Pardon my ignorance, but can you please explain why I should go through the DOL, and how trying to settle this without using them will hurt me? I would like to get all the information I can regarding the subject.

Rob

 

[davew128]

Pardon my ignorance, but can you please explain why I should go through the DOL, and how trying to settle this without using them will hurt me?

Because DOL is the agency that enforces these matters. Not going through them gives you ZERO enforceability action. Worse, assuming your employer cooperates and deals with you directly, I can almost guarantee the tax reporting will be wrong and not in your favor.