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.
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