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Started By
Message
Employer failed to send 401k contributions
Posted on 12/21/16 at 3:19 pm
Posted on 12/21/16 at 3:19 pm
Long story short...my employer said they "had problems" with sending 401k contributions to Nationwide earlier this month. The deduction came from 12/2/16 paycheck, but it's not going to hit the market until tomorrow. Am I being petty, or am I right about being pissed? Really not sure what 2 and a half weeks of that contribution not being in the market will do in the long run.
9
Posted on 12/21/16 at 3:24 pm to Crescent Connection
I could be wrong but I believe that if they make the contribution in a reasonable amount of time then they've abided by the laws. I would think that anything inside of 30 days would be considered reasonable.
Posted on 12/21/16 at 3:26 pm to Crescent Connection
quote:
Am I being petty
yup
Posted on 12/21/16 at 3:30 pm to Tigerpaw123
Ok. Good to know.
Posted on 12/21/16 at 3:31 pm to Crescent Connection
The absolute latest for an employer to remit EE deductions is the 15th business day of the following month. However, it should still be as soon as reasonably possible.
Most likely nothing will happen if you complain, but if it continues to happen I would discuss with HR because the DOL takes the timing of remittances very seriously.
Most likely nothing will happen if you complain, but if it continues to happen I would discuss with HR because the DOL takes the timing of remittances very seriously.
Posted on 12/21/16 at 3:59 pm to Crescent Connection
quote:
Really not sure what 2 and a half weeks of that contribution not being in the market will do in the long run.
Unless you are talking about a huge investment (which you aren't because this is a pay period 401k contribution) then I don't think it's going to be a big deal. What is it a couple of percentage points on a few hundred dollars? They need to be faster but this will be negligible in the long run.
Posted on 12/21/16 at 4:29 pm to Crescent Connection
It happens from time to time. Won't effect you in a major way, and probably no rules were broken... especially if there really was a problem.
Now if this becomes a common offense... I would say something.
Now if this becomes a common offense... I would say something.
Posted on 12/21/16 at 4:57 pm to Crescent Connection
What are we talking about, $50? Yeah spend a ton of time complaining...
Posted on 12/21/16 at 5:07 pm to C
quote:$980
What are we talking about, $50? Yeah spend a ton of time complaining...
Posted on 12/21/16 at 5:19 pm to Crescent Connection
Honestly I'd be more concerned that they are having serious cash flow problems.
Posted on 12/21/16 at 5:35 pm to Crescent Connection
quote:
$980
You're missing out on $980 in interest? You're either putting away about $20k per month or you've got some wild investments over the past few weeks.
Posted on 12/21/16 at 6:32 pm to Crescent Connection
It's only 3 weeks man
Posted on 12/21/16 at 6:33 pm to Crescent Connection
Jesus, this is beyond petty.
Posted on 12/21/16 at 6:55 pm to TigerDeBaiter
It's not being petty. It's his money that they have had for 2.5 weeks. He could have bought whatever funds he is in at a lower amount 2.5 weeks ago than he can whenever they send it. It's the point of it. I'd at least say something so they at least know people realize it happened.
The company is supposed to send the contributions in a consistent manner ie the same time each pay period. A one time glitch is okay but if it's a common occurrence than they could get into some trouble.
Somebody didn't do their job and whatever process that should be in place to catch it or prevent it from happening didnt work.
The company is supposed to send the contributions in a consistent manner ie the same time each pay period. A one time glitch is okay but if it's a common occurrence than they could get into some trouble.
Somebody didn't do their job and whatever process that should be in place to catch it or prevent it from happening didnt work.
Posted on 12/22/16 at 7:16 am to C
quote:
You're missing out on $980 in interest?
No, he might be missing out on the potential gains/losses on $980 in contributions. Which probably isn't much. And most 401 plans will buy at the prices that existed at the time the contribution was made anyway, so he hasn't lost out on anything more than likely.
BUT ... I'd worry if this resulted from cash flow problems at the company. A delay that long shouldn't happen.
Posted on 12/22/16 at 9:05 am to Serraneaux
quote:
It's not being petty
Totally agree. The same stuff has happened at my work before. My work can deposit them instantly one cycle then it take two weeks the next. No consistency at all. And what if he works at a company that has 100 people who all contribute $1,000. His company can make interest on $100,000 for two weeks. Now thats a big deal, right?
This post was edited on 12/22/16 at 9:17 am
Posted on 12/22/16 at 9:15 am to iAmBatman
quote:
I could be wrong but I believe that if they make the contribution in a reasonable amount of time then they've abided by the laws. I would think that anything inside of 30 days would be considered reasonable.
You are absolutely right in saying this, I guess my issue and probably the OP's is, in this day and age where I can take a picture of a check and deposit with a device that used to be used to talk to people, why can the person who processes paychecks not click a button and send MY money where it needs to go immediately.
That's what I tell my office manager (who doesn't contribute), give me $560 every pay period and I will give it back to you, I promise. Sometimes, however, it may take a day or two, other times it may take a week or two. People who do not contribute get ALL their money on payday. In cases like the OP, people who contribute get screwed IMO.
FWIW, I think 3-5 business days for it to show up in my account is acceptable and perfectly fine.
Posted on 12/22/16 at 9:53 am to OnTheBrink
The op did not indicate this was a reoccurring problem and by the note the company knows they screwed up. Yes the entire company payroll likely suffered which could make this a significant loss to the total population. But it's probably no more than 5% of that months contribution. Which is probably less than $50 to the average employee. Sucks but as long as it's fixed and it never occurs again you'd waste company resources further complaining. Good info provided in the discussion though so really glad the OP started this thread.
Posted on 12/22/16 at 9:56 am to C
quote:
The op did not indicate this was a reoccurring problem and by the note the company knows they screwed up.
Yeah, you're right. I have been dealing with issues at my company for 2 or 3 years so this is a sensitive subject for me.
Posted on 12/22/16 at 10:43 am to OnTheBrink
This should result in an audit finding against the company, if they have a decent plan auditor.
If the DOL were to come looking, the penalties get steep - - it's something like $100 per day per account, plus lost interest and earning. Over time and over a few hundred or so employees, that's a big check.
If the DOL were to come looking, the penalties get steep - - it's something like $100 per day per account, plus lost interest and earning. Over time and over a few hundred or so employees, that's a big check.
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