Retirement contributions post dated?

[frustrated_3]

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

Anyone have any experience with employer contributions to a retirement account? Our local city recently insisted taking over the payroll duties for our community center. Since then, there have been many mistakes and inconsistencies in our paychecks.

The latest is that my 403B contribution has not been invested directly after being taken from my paycheck (I realize it may take a little time) but I just called my plan and it seems they are dating the contributions with a certain date (Jan. 17, Jan. 31 and Feb. 9) and instructing the plan to take all those payments on another date (Feb. 9). Is this allowed? Our previous payroll vendor had investments purchased within a week.

I've read that it may not be ok and I'm currently trying to find out how many people are in my plan since that affects the law.

Any thoughts would be appreciated.

frustrated...

 

[davew128]

The money is supposed to be put in the fund no later than the 15th day after the end of the month it was contributed by you. So any amounts contributed in a month are supposed to be invested by the 15th of the next month. Your employer is in compliance from what you've stated.

 

[frustrated_3]

The money is supposed to be put in the fund no later than the 15th day after the end of the month it was contributed by you. So any amounts contributed in a month are supposed to be invested by the 15th of the next month. Your employer is in compliance from what you've stated.

Thanks for your response. I did see that info for larger employers but also saw that for under 100 employees, it's the 7th business day after the money is deducted from the check. Trying to get some clarification. My plan won't tell me how many people are in the group and I doubt my employer will give me that info but I believe we may be under 100. I may just move my money elsewhere since they seem to be playing with my money. When we had a payroll company the money posted within days to my retirement account.

frustrated