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Are there any rules or requirements as to a time frame of when money is removed from a paycheck and when the money is posted into a retirement account?

My current 401(k) receives funds from my paycheck once a month or every few weeks, not really a specific pattern. However I receive two paychecks a month. I am a bit confused as to why the money is not posting sooner.

Is it normal to have contributions be pulled from paychecks, sit and be posted together?

  • Sounds like the payroll department gets behind. I've had this happen once, but I would certainly be on someone's case if this was a regular occurrence. – NL - Apologize to Monica Sep 17 '14 at 16:46
  • I have been here over a year and yet to see something post sooner then 2 weeks, and it is normally 4 weeks. Just curious if I have a leg to stand on when asking why it takes so long. – treeNinja Sep 17 '14 at 16:52
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I found this website for some ammo if you need it. For plans with less than 100 participants the limit is 7 days after deduction from your paycheck, though an extension is possible with some paperwork. A DOL audit would probably land your employer in some trouble if they are regularly taking 4 weeks to deposit your funds in the 401k account.

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  • That is good to know. Thanks for the link, I would up vote if I had enough reputation. – treeNinja Sep 17 '14 at 18:03
  • I did for both the question and answer. Good work! – Pete B. Sep 17 '14 at 18:05
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    From that link, for companies with more than 100 employees, "Your employer has to send the 401k plan assets to the plan trustee no later than 15 business days after the end of the month in which the money is deducted." 15 business days is darn near the entire of next month. So it looks like for the early paycheck, it could be as much as 6 weeks legally. Still, WAY better than having taxes taken out of it! – corsiKa Sep 17 '14 at 19:55

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