Hello, everyone:
My basic situation is that I have been having 401(k) contributions withheld from my paychecks since December of last year, and only the 1st paycheck's contribution has been deposited so far (in March).
Now, a little background and detail. (Sorry for the long-windedness, but I wanted to be clear in order to get some appropriate opinions.)
My previous company was purchased by this new company in November of last year. In March, I was able to access my account on the plan provider's website and noticed that only 1 paycheck's contribution had been deposited (my withholding and the company's match). I contacted my liaison (the controller) with the company, and they informed me that "I'll check on the total for depositing into your account. We contribute on a monthly basis so there is some wait time. I know that [plan provider] was having a difficult time getting everyone in and assigning hire dates based on years of service rather than date of purchase...perhaps that's some of the issue. I do show that [this amount of money(more than is in my account)] has been paid to [plan provider] on your behalf (employee contribution and employer match) so our records are correct through 2/28/08."
Okay, fine, I decided I would give them the benefit of the doubt. I let it go for a month.
Then, a month later, after nothing had changed in my 401(k), I contacted them again, and they replied: "I'm checking into the contributions but with our new payroll company starting in February I'm almost certain that is the extended delay. Contributions are made monthly for the previous month...normally. With all the addition of employee in November I know that November, December and January were delayed. I'll update you as I have information."
Okay, different answer this time, I assume it's a plausible situation.
I waited about 20 more days with no response.
I contacted them again, reminding them of the situation and of the Department of Labor rule about the time limit for deposits.
I got no response for 2 weeks.
I contacted again. This time: "I'm not ignoring you, sorry. Looking into this, I know there was some delay because we just went through some annual testing and census/audit on the policy...which normally during that time they hold deposits. This could be the case. I'm waiting on a response from [plan provider] and will let you know. I'm aware of the Department of Labor Law that states...however there are also 401k policy regulations that can put plans on what they call a "Black Out" period when no activity happens...As soon as I find out I'll advise."
I replied that I thought notices were required to be sent out before blackout periods.
They responded: "Blackout periods are normally notified, but not in the case of a census/audit which is done annually, (ours for 2007 has taken an unusually long time because it is a new plan in 2007 and our previous plan holder has not been all that cooperative), they are not, the plan document allow for these without notification. I'm waiting to hear back from my rep...first thing Monday a.m."
I waited until Tuesday and, after not being contacted, I called my plan provider, whose account rep told me that no contributions had been received from my company for February, March, or April. January's had been, but mine was absent from it. They are contacting my company and are supposed to get back to me. Oddly, late in the day, I got an email from my company contact that read, "Just wanted to let you know I'm still working on this...the last contribution they show is the one for January 2008. I know our census/testing starting in February so that has to be the hold up but just wanted to let you know that I'm still digging into this. Thanks for your patience."
Is this scenario even plausible?
I want it taken care of (with interest lost), but I don't want to contact the DOL if the company is possibly not doing anything wrong. Is ineptitude illegal?
A few specific questions:
I thought blackout periods still allowed for contributions to be deposited, that you just couldn't make any changes to your account. Am I wrong?
What is this census/audit/testing crap, and would this prevent deposits from being made? And would this be done yearly such that contributions would be stopped yearly for a period?
I know that my contributions are supposed to be deposited by the following month, but are there time rules on the employer match? Just curious.
Maybe I should run the scenario by the DOL and then contact my employer with the DOL's response before I take any action. Perhaps?
If this is at all confusing, I apologize...I can clarify any unclear points.
Thanks for any suggestions.
My basic situation is that I have been having 401(k) contributions withheld from my paychecks since December of last year, and only the 1st paycheck's contribution has been deposited so far (in March).
Now, a little background and detail. (Sorry for the long-windedness, but I wanted to be clear in order to get some appropriate opinions.)
My previous company was purchased by this new company in November of last year. In March, I was able to access my account on the plan provider's website and noticed that only 1 paycheck's contribution had been deposited (my withholding and the company's match). I contacted my liaison (the controller) with the company, and they informed me that "I'll check on the total for depositing into your account. We contribute on a monthly basis so there is some wait time. I know that [plan provider] was having a difficult time getting everyone in and assigning hire dates based on years of service rather than date of purchase...perhaps that's some of the issue. I do show that [this amount of money(more than is in my account)] has been paid to [plan provider] on your behalf (employee contribution and employer match) so our records are correct through 2/28/08."
Okay, fine, I decided I would give them the benefit of the doubt. I let it go for a month.
Then, a month later, after nothing had changed in my 401(k), I contacted them again, and they replied: "I'm checking into the contributions but with our new payroll company starting in February I'm almost certain that is the extended delay. Contributions are made monthly for the previous month...normally. With all the addition of employee in November I know that November, December and January were delayed. I'll update you as I have information."
Okay, different answer this time, I assume it's a plausible situation.
I waited about 20 more days with no response.
I contacted them again, reminding them of the situation and of the Department of Labor rule about the time limit for deposits.
I got no response for 2 weeks.
I contacted again. This time: "I'm not ignoring you, sorry. Looking into this, I know there was some delay because we just went through some annual testing and census/audit on the policy...which normally during that time they hold deposits. This could be the case. I'm waiting on a response from [plan provider] and will let you know. I'm aware of the Department of Labor Law that states...however there are also 401k policy regulations that can put plans on what they call a "Black Out" period when no activity happens...As soon as I find out I'll advise."
I replied that I thought notices were required to be sent out before blackout periods.
They responded: "Blackout periods are normally notified, but not in the case of a census/audit which is done annually, (ours for 2007 has taken an unusually long time because it is a new plan in 2007 and our previous plan holder has not been all that cooperative), they are not, the plan document allow for these without notification. I'm waiting to hear back from my rep...first thing Monday a.m."
I waited until Tuesday and, after not being contacted, I called my plan provider, whose account rep told me that no contributions had been received from my company for February, March, or April. January's had been, but mine was absent from it. They are contacting my company and are supposed to get back to me. Oddly, late in the day, I got an email from my company contact that read, "Just wanted to let you know I'm still working on this...the last contribution they show is the one for January 2008. I know our census/testing starting in February so that has to be the hold up but just wanted to let you know that I'm still digging into this. Thanks for your patience."
Is this scenario even plausible?
I want it taken care of (with interest lost), but I don't want to contact the DOL if the company is possibly not doing anything wrong. Is ineptitude illegal?
A few specific questions:
I thought blackout periods still allowed for contributions to be deposited, that you just couldn't make any changes to your account. Am I wrong?
What is this census/audit/testing crap, and would this prevent deposits from being made? And would this be done yearly such that contributions would be stopped yearly for a period?
I know that my contributions are supposed to be deposited by the following month, but are there time rules on the employer match? Just curious.
Maybe I should run the scenario by the DOL and then contact my employer with the DOL's response before I take any action. Perhaps?
If this is at all confusing, I apologize...I can clarify any unclear points.
Thanks for any suggestions.
