401K Contributions

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BoggledHead2
Posts: 562
Joined: Tue Jun 12, 2018 6:50 pm

401K Contributions

Post by BoggledHead2 »

I max out my 401K, bi-monthly paycheck.

Approximately how long do your 401K contributions take to deposit into your 401Ks (i.e. deducted from check, deposited in account).

We’ve switched over payroll companies, used to get deposited into our 401K same day ... now sometimes its weeks after and difficult to track/monitor.

Any advice on how to increase this deposit time or is it at the company discretion?
runner3081
Posts: 3842
Joined: Mon Aug 22, 2016 3:22 pm

Re: 401K Contributions

Post by runner3081 »

I have seen anywhere up to 14 days.
tesuzuki2002
Posts: 1164
Joined: Fri Dec 11, 2015 12:40 pm

Re: 401K Contributions

Post by tesuzuki2002 »

I really dislike my company and how they handle it.. it varies a lot. Settlement date anywhere from 3 days after payday to 12-15 days...

I complain to HR a lot about that. I just want consistency in the process.
erictiger12
Posts: 23
Joined: Wed Jul 10, 2019 11:01 pm

Re: 401K Contributions

Post by erictiger12 »

Mine is on the same day. Normally at 9pm, I can see the new purchase.
Spirit Rider
Posts: 13939
Joined: Fri Mar 02, 2007 2:39 pm

Re: 401K Contributions

Post by Spirit Rider »

Regulations require that participant contributions to a 401k be deposited to the plan on the earliest date that they can be reasonably segregated from the employer's general assets. If the plan has < 100 employees they have a DOL safe harbor of 7 business days. If the payroll pay date is on a Thu/Fri that will be 11 calendar days. The DOL expects employers with > 100 employees to make the deposits earlier. Employers have far more to fear from the DOL on this issue than the IRS.
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retired@50
Posts: 4225
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: 401K Contributions

Post by retired@50 »

I'd bring it up with someone in payroll or human resources. Perhaps you could try to find out more about the process and why the heck it takes more than three days. The worst I ever experienced was getting paid on Fridays, and sometimes it would take until the following Wednesday. I spoke to the CFO (it was a small company) and things improved to the following Monday or Tuesday if there was a holiday.

I can't think of a single good reason why it should take more than 3 business days. IF you had elected to not participate in the 401k plan, you would have had ALL your money on payday. There is no sound business reason why someone else gets to have possession of some part of your paycheck for a week or two.

Best of luck.
This is one person's opinion. Nothing more.
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