401k Investment Timing

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401k Investment Timing

Post by animule » Sun Jan 06, 2008 4:41 pm

Each year, I try to max out my 401k. The last payday of 2007 was December 31, 2007 for me and the 401k portion of this paycheck has yet to hit my account (as of January 6, 2008) which is with Principal. The means that this 401k contribution will fall in 2008 and not 2007 which will leave me a little bit under the $15.5k limit.

I was wondering what the experience of others on this forum has been regarding the timing of 401k investments. With our plan, I have noticed over the course of the year that a handful of investments have gone in the same date as the paycheck, but most others hit the account anywhere from 2 to 5 business days later.

Anyone out there want to share their experiences? I'm wondering if mine is typical as I am not altogether pleased with the lack of ability to get the last deposit of 2007 in the account in a timely fashion.

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Post by DaveTH » Sun Jan 06, 2008 4:44 pm

There is no delay in my 401K contributions. They are posted the same day as they are deducted from my pay check.

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Post by dbr » Sun Jan 06, 2008 4:47 pm

Paycheck deposit and 401K updates are posted overnight of the last business day of each month (which can be before the last day of the month if a Sat, Sun, or Holiday).

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Post by dlpmpls » Sun Jan 06, 2008 8:28 pm

DaveTH wrote:There is no delay in my 401K contributions. They are posted the same day as they are deducted from my pay check.
Dave this is something that has always puzzled me, deductions from my pay check average 2 weeks before they are applied to my 401K. In this day and age of electronic transfer I have to wonder who's making money on my money for 2 weeks. I find it hard to believe that it's just floating on around as 0's and 1's and no one is making money. Then again I'm not sure it's even being transfered electronically, maybe it's going snail mail.

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Post by Easy Rhino » Sun Jan 06, 2008 8:30 pm

There's typically about a one-week lag between my paycheck and when the contribution hits the 401k.

However, last year, there were only a few days between my last paycheck and the end of the year. In this case, the lag shrank, and the contributions were showed up in the brokerage account on the last day.

In your case, I wonder which year your contribution was counted towards by payroll and 401k administrator's systems?

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Post by FISH » Sun Jan 06, 2008 8:42 pm

Easy Rhino,

If the money was payroll-deducted in 2007, it will show as a 2007 contribution, even though the money may not reach your account until 2008.

I work at a small company, and sometimes there is a few day lag between payday, and the time the money is wired into our 401k provider.
(bookeeper out ill, etc,)

Remember, it's your employer who supplies this information to the IRS, not your 401k provider.

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Post by Buddtholomew » Sun Jan 06, 2008 8:54 pm


That may be the case that your employer reports contributions to the IRS for the tax year you contributed, but unfortunately the 401K host considers the contribution against the next year's maximum of 15.5K. I speak from experience as Kaiser's 401K plan is hosted with Vanguard.


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Post by Betelgeuse » Sun Jan 06, 2008 8:56 pm

2-3 weeks for my T.Rowe contribution. I have no idea why. Luckily, my next pay check will be my last with my company and T.Rowe, and my new job has a Vanguard 401k.

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Post by Jadzia » Sun Jan 06, 2008 9:02 pm

ADP administers our 401k plan in addition to our payroll. Still, it takes almost a month for new money to get added to my 401k! I get paid bi-weekly and still it shows my last contribution date was 12/12/07.

I have tried complaining about this to HR but got some BS answer.


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Post by MP173 » Sun Jan 06, 2008 9:14 pm

ADP administers our 401k and i have noticed it takes about a month to process the transfer. At one time companies were allowed up to 90 days to make the transfer...not sure if that is still the case.


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Post by aainvestor » Sun Jan 06, 2008 11:40 pm

I must be fortunate. My 401k contribution shows up the day BEFORE my paycheck every other friday. I can check the website thursday night and see my new investments.


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Post by wlpotts » Mon Jan 07, 2008 11:19 pm

FISH Wrote:
If the money was payroll-deducted in 2007, it will show as a 2007 contribution, even though the money may not reach your account until 2008.
I too have Principal. I called them to confirm the same scenario at the end of the year. It is true that if the contibution was made for 2007 contributions, it is applied to 2007 and NOT 2008 even if was recieved in or posted 2008.


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