for 401k payroll deductions, who gets interest on the money during the 2-3 weeks it takes to get to 401k acct?

Question

because the money disappears from my paycheck right away, but the mutual fund doesn't credit it until a few weeks later, and with electronic transfer, i know it can't take THAT long.

Answer 1

Yes this is a good question!
The answer is one of these choices:
1.Your employer is getting the interest. - or
2. The 401 company is getting the interest - or
3. They are splitting the interest.

Bottom line YOU are getting NO interest.

Answer 2

Your employer does. They will say it helps them defray the cost of administering the 401k program.

Be happy. I have heard of companies that only credit 401k contributions quarterly. 2-3 weeks isn't too bad.

Answer 3

The company you work for deducts the contributions from payroll and probably sends the funds in bulk (ie, for all employees) at a later date.

Answer 4

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Answer 5

The 401K money should be credited that same day. It's the law.

Answer 6

Good question.......I was wondering the same thing......