It has come to my attention that money deducted from my paycheck has not been deposited into my 401k account?

Question

for the past 18 months . what can i do? as my employers has repeatedly refuse to answer my concerns

Answer 1

How did it come to your attention? What are they doing when they refuse to answer your concerns? Have they admitted it? Have they told you that it's there? Have they been providing you with statements? Have you looked up the 5500's for your company to make sure they are declaring that there are no late payments?

basically if you know that the contributions have not been depsoited then go to the US Department of Labor. They will go after your employer. And, may as well start looking for a new job as you don't want to be where you are at anymore.

And no...they don't have 15 days following end of month. That's a fallacy. Rule is that they have 15 days following the end of the month OR as soon as administratively possible. DOL has said typically it should take no more than 3-4 DAYS following the payroll....especially for smaller firms. They know how much it is so deposit it. Only those firms with multiple sites in multiple states and still doing payroll by hand would be allotted the full time period.

btw the owner of your company, as plan sponsor, will be personally liable for this....hope he's got a lot of cash on hand if he hasn't done it...the penalties and excise taxes are not good.

Answer 2

If this is true, the employer is violating the law. Employers must deposit employee contributions with the plan custodian within 15 business days following the month in which the contribution amount was withheld (source: www.401k.org).

Answer 3

They are breaking the law. Tell them you want proof of deposit now, or turn them in.

Oh,... and look for a new job.

Answer 4

fist step is to contact the states attorney!!!