I stared my first-ever 401K this past January 1999, (our company just started the 401K the previous January 1998 - I wasn't allowed to join for a year - another story). My experience and knowledge is limited. Since I am payed once a month (the first Friday of the month-for the previous month), I was not happy to see the contributions being made so many days into the next month (once it was 22 days). I discovered that this is not acceptable IRS policy. I complained to the Trustee, (he being new to this) checked it out and indeed they had to adjust. Trustee blamed Dean Witter-the middle man, Dean Witter blamed Alliance Capital. Bla, Bla Bla. But it was supposedly fixed. Secondly, I went (and continue) to hound the Trustee for an indexed fund. Thirdly, of the three statements (one left off a month and they had to resend the corrected one), plus the exchange redemption/purchase I did, only one exchange confirmation (they sent two, each with a different figure) from these statements is correct (and they used the wrong one-less money- to calculate my buy and sell!). Every statement is incorrect. In fact, from last statement to this, I lost shares. (Since I put the Trustee on alert of errors, he has expected me to be the 401K police but he is now too and actually found this error. I can only imagine what they did last year before I got in!)I can't believe these erroronious bookeeping practices are acceptable? Is this normal? What should I do?
Contact Dept of Labor. Here is a URL with more information: http://www.dol.gov/dol/pwba/public/pension.htmZev
If you go to Dept of Labor, you run the risk of having your employer cancel your 401K plan. "Administrative costs too high, etc, etc." Then what do you do? What do you gain?I'd say if you think these folks are honest, you would be best off to grin and bear it. Keep on their butts to get your account credited promptly and correctly. As time goes on, they will probably start doing a better job. If not encourage your employer to find another plan with more capable people (and better choices). A bit of diplomacy here could be helpful. You can always threaten to call in the law as a last resort, but don't hurry. You can also damage your future with the company if you are not careful.
Also, contact your congressman and U.S. Senators. They can also help. There have been hearings during the past year by the Senate Special Committee on Aging. You might also contact that Committee and ask their advice. To do so, call 202-224-3121 and ask for the Senate Special Committee on Aging.mcadoo11
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