[USER]

401k contributions question:
My employer recently switched platforms from ADP to Paylocity. We use these platforms for our time sheets as well as 401k.

Paylocity does not have any options for us to check our retirement accounts and we were still using ADP to check this or make changes.

I recently went to check and notice although I’ve got weekly contributions set up and am trying to max out my 401k this year, no confirmation have been made since March 11th of this year.

My paystubs show the money coming out but I literally have no idea where it’s going and am wondering if my company is pocketing (or “borrowing”) it.

I reached out to HR who just said there is a disconnect between the two apps and they are working to resolve it and I could opt out of the 401k if I wanted.

I said I absolutely did not want to opt out or change my contributions, I just wanted to know where my money is and asked what brokerage our 401k is at. They have not responded.

I’m on the phone with ADP now and they just confirmed no contributions have been made since March 11th! They advised I reach out to my payroll department.

Our company also has a current grievance with our union as last year they were not paying our benefits and we did not have insurance.

They worked out a payment plan to get that on track but last Tuesday at our union meeting I learned they might also not be paying into our union retirement plans like they are supposed to be doing.

So literally if they were stealing our 401k money it wouldn’t be surprising.

How long does a company have to deposit contributions into a 401k after they are deducted from an employees pay?

This is so crazy!

Thank you

[Dana]

I’m an employer. The deductions must be funded to the 401k immediately, like within a day. There are penalties involved, even if it’s just that you were off by a penny and it was an honest mistake.

The deductions and contributions are audited annually to catch things like this.

That is your earned income and they must direct it to the 401k account immediately and in full.

In order for you to be contributing to the 401k with a salary reduction agreement, you should be getting a yearly statement of the account and description of its design, vesting schedule, where it is held, etc.

These are required to be distributed annually to employees, so you should know exactly where your money is.

[Katie]

Yikes. I am non-union, but work for a big corporation. My 401k contributions are always invested with the effective date of payday (Friday), but don’t show up on the Empower website until the following Monday.

Your situation is very disturbing, and if your employer is in the private sector, I’d file an ERISA complaint with the Department of Labor.

[Enilda]

Look for your employee manual or annual benefits update. The information has to be there.

You should know who the brokerage is.

[Author]

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