How are MF orders executed in 401k Drop same day as 401k contribution?

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elderwise
Posts: 83
Joined: Fri Jul 22, 2016 10:27 am

How are MF orders executed in 401k Drop same day as 401k contribution?

Post by elderwise » Fri Oct 12, 2018 9:10 am

Guys,

So markets went down quite a bit yesterday and the day before.

I primarily have VTSAX in my 401k, and if the paycheck contribution happened the same day as the crash, would it mean unless it kept going down the second day (like it did?) my contribution would not get that low price?

Or is it that since MF orders are anyways executed on T-1 , that it if my contribution was added 10/10 , it would execute on 10/09 price?

Not that it makes a huge difference, but just curious how this works.

Thanks,

livesoft
Posts: 62838
Joined: Thu Mar 01, 2007 8:00 pm

Re: How are MF orders executed in 401k Drop same day as 401k contribution?

Post by livesoft » Fri Oct 12, 2018 9:14 am

Every 401(k) is different when it comes to when a paycheck is received and when a 401(k) contribution ends up purchasing the assets. For instant, my spouse's paycheck shows up on Thursdays, but any purchase of mutual funds from contributions from that paycheck show up on Fridays with the Friday closing Friday NAV.

We have seen on the forum that sometimes it could take weeks before the 401(k) paycheck contribution bought any shares.

You can look at the past history of your 401(k) and your paychecks to see the relationship that you have.
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elderwise
Posts: 83
Joined: Fri Jul 22, 2016 10:27 am

Re: How are MF orders executed in 401k Drop same day as 401k contribution?

Post by elderwise » Fri Oct 12, 2018 10:03 am

livesoft wrote:
Fri Oct 12, 2018 9:14 am
Every 401(k) is different when it comes to when a paycheck is received and when a 401(k) contribution ends up purchasing the assets. For instant, my spouse's paycheck shows up on Thursdays, but any purchase of mutual funds from contributions from that paycheck show up on Fridays with the Friday closing Friday NAV.

We have seen on the forum that sometimes it could take weeks before the 401(k) paycheck contribution bought any shares.

You can look at the past history of your 401(k) and your paychecks to see the relationship that you have.
Thanks, how would I check this.

I did run a statement of account, and all i see is Contribution dates , no mention of purchase etc.Is there somewhere I can see when the NAV purchase is actually processed / done?

livesoft
Posts: 62838
Joined: Thu Mar 01, 2007 8:00 pm

Re: How are MF orders executed in 401k Drop same day as 401k contribution?

Post by livesoft » Fri Oct 12, 2018 10:23 am

Yes, you can see purchase dates and prices. Once again, every 401(k) is different. You can pm me your login credentials and I will steal all your money look up in your account where the info is. Or you can get help by calling the phone number on the web site that you login to.

It is also a good idea to find another source for the daily prices|NAVs of your investments.
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