401k violation and contract

H

hankey0

New Member
When I looked at my 401k transaction history from my online 401k account, I found that my employer did not deposit contributions for several months. It was not a delay of contributions, but rather skip of deposit for certain period of months. This resulted in about $1,000 difference from the 401k records in my paychecks and total 401k.

Meanwhile, because of the contract with this company, I cannot quit until next year(while it can fire me whenever it wants).

It's more of a legal questions, but I'm wondering my company's violation of 401k can help me to get out of the unfair contract with my company. Also, I want to know which legal options I have for my company's playing around with 401k contributions.

For now, asking my company to deposit missing contributions is not an option because the amount is not that huge. It's more about the ethics of this company, and because of that, I don't want to do business with this company any more.

Thank you for reading this post.
 
unitednations said:
This could be a very serious issue for your company. There is a myraid of rules governing this. There is the ERISA rules and Department of labor also has jurisdiction over this.

I can't remember the rules off the top of my head but I believe that your 401k account has to be credited within 30 days after the end of the month in which you made the contribution.

As to how this impact employment contract, that would be for a lawyer to decide. If you wanted to use the timing of the contribution issue as leverage to get out of the employment contract then that will obviously give you leverage. However, if you complained to department of labor they will investigate and probably fine your company a nominal amount but I doubt you would be able to use that to get out of your employment contract.
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Unitednations is right. No employer can mess with employees 401K. I have heard of an Employer who went to jail for messing with employees 401K. People who do this kind of things are usually very thick skinned and take there chances thinking that the employee would not dare to report.
 
Before taking further action, better talk to Financial Institution where your company holds its 401K and ask them why you didn't see the match from your employer.They should give a valid reason like "company stopped doing the match starting this month for all employees " or it could be a mistake .

There is no need to worry, since no financial company accepts the employer unethical policies.
 
It could be just a mistake.
My company did the exact opposite. They were contributing more than their standard contribution and I did not realize it for about 3 months when I checked my account online. I then pointed the error to the Finance Department and they thanked me for telling them and they corrected the error and decided not to reduce the extra amount that they had paid me for 3 months.
 
Employer match is not mandatory.
Employer MUST deposit what was witheld as your own contribution, though.
 
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