How long does it take for your 403b/401k contribution to show up after payday?

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Cranberry44
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How long does it take for your 403b/401k contribution to show up after payday?

Post by Cranberry44 »

I started a new job that offers a 403b. This is the first time I've had an employer sponsored account (is this the right language for that?).

I get paid every two weeks on Friday, and I’ve only had two paychecks so far, but I am a bit surprised at how long it takes for my payroll deduction to show up in TIAA, the 403b custodian (about 7 days). Is this time-delay between payday and deposit into the 403b account typical?

To be clear, this is not a big deal to me, I’m just curious what the normal timeline is since I’ve never had an employer sponsored account. I was, out of ignorance, expecting it all to show up on payday, just like direct deposit to my checking account.
Last edited by Cranberry44 on Sun Sep 20, 2020 8:55 am, edited 1 time in total.
stoptothink
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by stoptothink »

With my current employer, it is always within 3 days. With my previous employer it generally took 6-8 weeks and one time a missed contribution posted 8 months later. By law they have 15 days after the months it's deducted from, but instead of reporting them I left (for countless reasons).
MathWizard
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by MathWizard »

I'm with TIAA as well, and it is usually just 3 business days after payday for me.

This difference is more likely with your payroll dept. than with TIAA.
Most people I know in TIAA are paid on salary rather than every 2 weeks, so the contributions can be computer and ready for a year at a time. If your pay fluctuates, that may increase the processing time, but one would think that all this would be automated.
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F150HD
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by F150HD »

its a good question, I was going to ask this X months ago as I had a contribution disappear for nearly 2 weeks then.
Where I'm at, paid Friday, it typically arrives to the account the following Tuesday, though some weeks its by Thurs or Friday. I never got the lag on this as its all automated.

Actually, one hiccup in this if I recall was a contribution at the end of the year in December that actually didn't post until January. That was one I dug into this over, as when it posted in January I feared it would reduce the amount I could contribute during that year, and got cheated on maxing contributions the year prior as it posted late. It was bizarre.

On this note, I now have increased my weekly contributions so the account maximizes in early December (contributions then stop) to avoid this issue at year end.
Last edited by F150HD on Sun Sep 20, 2020 9:07 am, edited 3 times in total.
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obafgkm
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by obafgkm »

I get paid on the 15th and last days of the month (or the business day before those dates) and almost always the 403(b) contribution shows up dated the day of my paycheck at TIAA. Occasionally (maybe 1 or 2 times a year out of 24?) the contribution shows up dated the next day.
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ClevrChico
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by ClevrChico »

I get paid on a Friday, and my 401k is updated on Saturday.

Any kind of transaction, such as with re-balancing, takes one business day to show up, but the actual confirmation arrives four business days later.
runner3081
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by runner3081 »

Ours hit on the 3rd business day, following pay day.

We get paid on TUE, hits on FRI.

7-days is reasonable and does not run afoul of ERISA.
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mmmodem
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by mmmodem »

My previous employer, it was 3-14 days. More often it was 3 days but a few instances it was over 14 days which led to some questions since the next paycheck had arrived. If they’re this backed up, they’ll never catch up.

My current employer is immediately. I suspect they time it earlier along with my paycheck to post same day.
Patzer
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by Patzer »

My 401K purchase occurs the day I get paid.
I can't actually see the transaction until the next morning though.
terran
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by terran »

Payday is the last business day of the month. The contribution usually shows up the 2nd business of the following month, but sometimes slightly later. Large employer, Fidelity account.
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anon_investor
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by anon_investor »

obafgkm wrote: Sun Sep 20, 2020 9:04 am I get paid on the 15th and last days of the month (or the business day before those dates) and almost always the 403(b) contribution shows up dated the day of my paycheck at TIAA. Occasionally (maybe 1 or 2 times a year out of 24?) the contribution shows up dated the next day.
Same pay days, different custodian, but similar experience.
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Raymond
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by Raymond »

My wife's employer deposits her 401k contributions the day after each payday (which is every other Thursday).

My employer deposits my contributions three business days after payday (also every other Thursday.)
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MildlyEccentric
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by MildlyEccentric »

A google search provides the following information from an IRS webpage for 401k contributions.

Businesses should make the contribution as soon as they can, but in no case later than the 15th business day of the month which follows the month in which the contribution is made. This deadline is not a safe harbor, however. Small businesses (less than 100 employees) have a safe harbor deadline of 7 business days to make the deposit.
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Cranberry44
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by Cranberry44 »

F150HD wrote: Sun Sep 20, 2020 9:00 am ...

Actually, one hiccup in this if I recall was a contribution at the end of the year in December that actually didn't post until January. That was one I dug into this over, as when it posted in January I feared it would reduce the amount I could contribute during that year, and got cheated on maxing contributions the year prior as it posted late. It was bizarre.

On this note, I now have increased my weekly contributions so the account maximizes in early December (contributions then stop) to avoid this issue at year end.
Fascinating: I've been concerned about this too, as it appears my last payday in this new job is December 25. Did the contribution in January count towards the previous year or for the year in which is was posted?
terran
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by terran »

Cranberry44 wrote: Sun Sep 20, 2020 9:23 am
F150HD wrote: Sun Sep 20, 2020 9:00 am ...

Actually, one hiccup in this if I recall was a contribution at the end of the year in December that actually didn't post until January. That was one I dug into this over, as when it posted in January I feared it would reduce the amount I could contribute during that year, and got cheated on maxing contributions the year prior as it posted late. It was bizarre.

On this note, I now have increased my weekly contributions so the account maximizes in early December (contributions then stop) to avoid this issue at year end.
Fascinating: I've been concerned about this too, as it appears my last payday in this new job is December 25. Did the contribution in January count towards the previous year or for the year in which is was posted?
When it actually posts should be irrelevant, but it would depend if payroll handles things as it should or not.
crefwatch
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by crefwatch »

It's not reasonable for a new enrollment to occur in Internet-Time, even if the provider were more efficient than TIAA-CREF. In fairness, there is a lot of regulatory compliance to be done. You should wait a few months before judging the time delay.

I worked for a variety of not-for-profits my entire career. In some of them, the Comptroller was also the Payroll Manger and the Head of HR (!). And (I'm not belittling them, just reporting... in sadness) such overburdened managers had a tendency towards substance abuse. When you have a smaller staff, things take longer to do. And, just for completeness, one place I worked actually DID delay salary-reduction payments (that is, remitting the EMPLOYEE money) during a period of corporate financial stress. But that is extremely uncommon, and I don't mean to create a new worry for you. And just like delaying payroll tax payments (quite common in for-profit small companies), it's seriously illegal. I rarely compared my pay stubs with my remitted contributions as carefully as I check my credit card statements!
mptfan
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by mptfan »

stoptothink wrote: Sun Sep 20, 2020 8:53 amBy law they have 15 days after the months it's deducted from, but instead of reporting them I left (for countless reasons).
They have until the 15th business day of the following month.

Department of Labor rules require that the employer deposit deferrals to the trust as soon as the employer can; however, in no event can the deposit be later than the 15th business day of the following month.
student
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by student »

The issue is with your employer. I have TIAA and it posts with a couple days. I think I only remember a delay once or twice is over 20 years and I do not know who were at fault.
MrJedi
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by MrJedi »

Same day. I don't see it until the next day, but if I get paid on the 15th, I see purchases at the market closing prices on the 15th in my history when i look it up the next day.
Last edited by MrJedi on Sun Sep 20, 2020 11:14 am, edited 1 time in total.
RyeBourbon
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by RyeBourbon »

Usually a week or two.
JS-Elcano
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by JS-Elcano »

Cranberry44 wrote: Sun Sep 20, 2020 8:46 am I started a new job that offers a 403b. This is the first time I've had an employer sponsored account (is this the right language for that?).

I get paid every two weeks on Friday, and I’ve only had two paychecks so far, but I am a bit surprised at how long it takes for my payroll deduction to show up in TIAA, the 403b custodian (about 7 days). Is this time-delay between payday and deposit into the 403b account typical?

To be clear, this is not a big deal to me, I’m just curious what the normal timeline is since I’ve never had an employer sponsored account. I was, out of ignorance, expecting it all to show up on payday, just like direct deposit to my checking account.
I am also with TIAA and it takes exactly 7 days (if counting the weekend).
erictiger12
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by erictiger12 »

On the same day. I can see the new purchase at around 8:00 pm.
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F150HD
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by F150HD »

Cranberry44 wrote: Sun Sep 20, 2020 9:23 am
F150HD wrote: Sun Sep 20, 2020 9:00 am ...

Actually, one hiccup in this if I recall was a contribution at the end of the year in December that actually didn't post until January. That was one I dug into this over, as when it posted in January I feared it would reduce the amount I could contribute during that year, and got cheated on maxing contributions the year prior as it posted late. It was bizarre.

On this note, I now have increased my weekly contributions so the account maximizes in early December (contributions then stop) to avoid this issue at year end.
Fascinating: I've been concerned about this too, as it appears my last payday in this new job is December 25. Did the contribution in January count towards the previous year or for the year in which is was posted?

Honestly the details are fuzzy....after calls to my HR and then to Fidelity, there ended up being an amount posted as "CASH" ?? (literally that word) and Fidelity said it was all ok. Cannot recall finite details of all of it. Somehow, the way the accounting is done, it counted for the year I wanted it to.

Regardless, I now maximize earlier in December (or November) to avoid this discussion with them again.
retire2022
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by retire2022 »

My employer, State of New York and my 457 plan provider, NYSDCP via Nationwide takes one day to post contribution, we get paid on bi weekly Wednesday, and the evening the contributions are uploaded as a transaction for following Thursday.
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Thrifty Femme
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by Thrifty Femme »

Up to a week except for the last paycheck. For that paycheck it gets deposited on the last business day of the year.
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ResearchMed
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by ResearchMed »

This is interesting.

DH is paid monthly, and his Employer contribution and Employee contribution post at totally separate times.
One shows up circa the 22nd of the month, and the other circa the 7th, roughly.

I need to double check just when his paycheck posts. (Or is "dated" or "sent"?)
Maybe I should start counting days to see if both can be "okay"?
:confused

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MNGopher
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by MNGopher »

Mine has varied from 2-15 days with the average being about 5 business days.
bugleheadd
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by bugleheadd »

my 401k is with fidelity

contributions are purchased on day of payday. the settled transaction and updated account balance shows up next business day
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Cranberry44
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by Cranberry44 »

[Deleted: accidental post]
Escapevelocity
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Re: How long does it take for your 403b/401k contribution to show up after payday?

Post by Escapevelocity »

Mine takes from 5-10 calendar days.
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