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Asked 12/15/2008

How long can an employer hold your 401K contribution before they actually deposit it into your account?

I have contributed 50.00 per week for the last few years and just recently noticed that according to my quarterly statements there have been no contributions since february of 08

 
 
 
 
 
Answers

Answer 1/3 - Submitted 1/26/2009

The contributions taken from your paycheck are SUPPOSED to be deposited into your plan BY the 15th business day of the month following the payroll. It is hard to tell if this is on your employers end or the administrator. The employer must send not only the file containing the information but the actual funds themselves. You may want to speak with the administrator to see what they are waiting form--
This is only for YOUR contribution, if it is employer profit sharing, or some other sort of employer funded source, this is completely different.

 
 

Answer 2/3 - Submitted 8/24/2011

If a plan has less than 100 participants in the beginnign of the year, they have 7 business MAX to deposit the funds. If it's more than 100, they have at the most 15 business days. But it should be as adminstratevely possible so those timeframes should not be the standard timeframes.

 
 

Answer 3/3 - Submitted 8/25/2011

Your contributions should be deposited by the beginning of the next pay period. It's highly unusual to see either your money or your employer's matching contributions withheld. You may want to check with your company policy or Human Resources to see if there's been an error in payroll.

Different policies may apply to the vested balance as well. At many places, you must put in a certain number of years before everything your employer contributes is considered yours. This deters employees from walking away with too much extra money, and encourages them to continue working for the same employer longer.

Unless your plan is set up differently, always assume there's somewhat less in your account than the total balance reflected. Staggered vestments in the employer contributions may not pass into your ownership for some time. Still, this shouldn't affect how any contributions are being reflected. All deposits should go through pretty quickly, and begin their journey on the market's ups and downs.

 
 
 
 
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