401K credit latency, how long is too long?

[OweYea]

California Resident.

I have a general question regarding how long is too long to wait to see a credit show up in your 401K account? It's March 6th and my 401K contribution that was taken out of my paycheck on the 15th of January has yet to be credited to my account. I feel that 5 to 7 days is the most it should take, anything else they're using my money for free!!

Is there any kind of law that penalized the employer or 401K administrator if they do not credit your account in a timely maner.

Thanks in advance for any advice...

 

[Beth3]

If I recall correctly, tax legislation passed in 2003 (EGTRRA) requires that the employer forward the employee's contributions to the investment advisor within two weeks. I don't know that the law addresses how long before those monies must be posted to the employee's account. I agree that something doesn't seem right here - either the investment advisor is doing a really lousy job or the funds aren't being transferred timely.

I suggest you give the federal Department of Labor a call and discuss your concerns with them. (www.dol.gov)