Skip to main content
No. of Recommendations: 0
Are there any rules or regulations on how quickly 401k money should be deposited into a participant's account?

There are--I once looked them up, but they're decidedly biased toward the employer--IIRC it was something like 60 days.

frequently my 401k monies won't show up in my account for as much as 4-5 weeks after I get paid. So, my $$ is sitting in *somebody's* account, perhaps earning interest (?), until it finally makes it's way into my 401K. On a good month, it takes 2-2.5 weeks to get deposited into my account.

I used to have this problem and it really galled me too! (We have ADP as our 401k 'administrator'.)

I actually thought it was my boss (who loves cash float because he earns interest on it) who was late with the payment to cover the contributions, but when I asked him about this (in front of others), he claimed he always made the payment the same day the payroll was issued, and that the delay was at the plan administrator.

Lo and behold, within a few months we got a notice from ADP that our contributions would show up in our accounts within 2 weeks in the future. I don't know if my boss changed this situation by his own behavior, or by complaining to ADP, but the situation did change.

I suggest you speak to your HR person, or whoever 'handles' the 401k and ask them why there are such large delays. Someone at your company is a 'trustee' of the plan and has fiduciary responsibility for it--it never hurts to point this out to whoever it is. It also points out that you are aware of their fiduciary responsibility.


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!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.