Missing 401k money

[Valentine Smith]

Tampa Florida.
My company has taken approx 2000 in monies from check in the last 6 mo for my 401K. Only 1200 shows up as deposited. Yesterday the fund managment showed me how to track the deposits. It looks like they are at least 700 short in deposits. How long can they hold on to my money before they deposit it in my fund? Is it legal for them to take the monies out of my check and take over 45 days or more to deposit them?

 

[cbg]

I'm not 100% certain of this but I believe the maximum length of time an employer can hold the 401k deductions after they are deducted from your check, is 15 days. I am 100% certain that the maximum length of time is less than 45 days. You can, if you wish, file a complaint with the Federal Department of Labor, which is the regulatory agency overseeing 401k plans.

 

[ShyCat]

I believe the absolute limit is the 15th business day of the month after the money has been deducted from your paycheck. So, for any May paychecks, the absolute last day for deposit in your 401(k) account would be June 21st.

However, the DOL insists that the deposit be made as soon as administratively possible. If it is administratively possible for your employer to get the deposit made within two to three days, the DOL will not look kindly on them for taking longer. Trying to take advantage of float or covering for cash flow management problems by delaying 401(k) deposits will get the employer in deep doo-doo with the DOL.

The notion of "administratively possible" does take into account that some 401(k) plans are set up to limit the number of deposits made to the employee accounts. In an effort to reduce administrative costs, small employers with weekly payrolls, for example, are allowed to negotiate with 401(k) plan administrators the cost savings that would be enjoyed by only accepting monthly deposits rather than weekly. This would be considered in the best interests of the employees if the plan's costs are passed on to the employees through quarterly account fees, etc.