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Employers Must Make Timely 401(k) Deposits
by Kimberly Lankford

I just discovered that the money withheld from my checks each payday isn't going into my 401(k) until the end of the year. Is this legal? I've missed out on a good year in the market because of this tactic. What are my options?

No, it's not legal, according to Ted Benna, president of the 401(k) Association.

The law requires employers to get the money into your account within 15 business days after the end of the month of the contribution. That's a far cry from what you say your employer is doing.

Ask your employer what's going on. If you don't get immediate satisfaction, contact the Department of Labor's Employee Benefits Security Administration. Call 866-444-3272 and explain your situation to a benefits advisor.

The agency will look into your complaint and might be able to straighten things out, with or without taking the case to court.

In the end, you and other workers could win payments for lost earnings.

"We have recovered more than $500 million in delinquent employee contributions," says Ann Combs, an Assistant Secretary of Labor.