No. of Recommendations: 0
Yes, the practise you describe is common. Insiders have explained on this board before that your 401K account actually owns units rather than mutual fund shares in many cases. In order to minimize the number of transactions and the paperwork (and their costs), companies often hold the funds for some time and then make composite contributions to the mutual funds in all participants accounts at one time.

Its a bit bothersome for some, but unless the delays are long its probably legal. Companies do this to minimize the cost, but why complain. Company is probably subsidizing some of the costs. If you complain, they could discontiune the 401K plan.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.