I have never heard of this before but it has me kind of steamed. My employer has a policy of a 3.5% match on my yearly gross salary so long as I am contributing at least 6%. I max out my 401K and the over 55 catch up each year.
Problem is the employer will only put in the 3.5% for each pay period I contribute at least 6% and they stop contributing their 3.5% once I hit the $16,500 401K max limit. After that they quit putting their 3.5% into my account then the following year in late April they fund their shortfall into my 401K account.
Problem is compounded if I really sock the 401k contribution away ahead of schedule, or in the case the last two years we get a sizable bonus in April of which they also fund your 401K contribution from it. Last year I was maxed on the 401K by August and I will likely be maxed on the 401K by end of July.
Not a huge deal but by the end of last year they had held back about $1,600 of their 401K contribution and didn't put it back into my account until just last week. Every year they are using my money and on top of that I lost out on any earning that money should have made.
When I complained about losing the earnings that money should have made they said along the lines "well if the market went down we would have paid you the full amount anyway". I responded "well if I didn't think that year in and year out the market would be up more than it is down I wouldn't be investing in it in the first place, you are making money off my money."
Is this legal for the company to be doing this? If it is, it is definitely not ethical in my opinion.
Problem is the employer will only put in the 3.5% for each pay period I contribute at least 6% and they stop contributing their 3.5% once I hit the $16,500 401K max limit. After that they quit putting their 3.5% into my account then the following year in late April they fund their shortfall into my 401K account.
Problem is compounded if I really sock the 401k contribution away ahead of schedule, or in the case the last two years we get a sizable bonus in April of which they also fund your 401K contribution from it. Last year I was maxed on the 401K by August and I will likely be maxed on the 401K by end of July.
Not a huge deal but by the end of last year they had held back about $1,600 of their 401K contribution and didn't put it back into my account until just last week. Every year they are using my money and on top of that I lost out on any earning that money should have made.
When I complained about losing the earnings that money should have made they said along the lines "well if the market went down we would have paid you the full amount anyway". I responded "well if I didn't think that year in and year out the market would be up more than it is down I wouldn't be investing in it in the first place, you are making money off my money."
Is this legal for the company to be doing this? If it is, it is definitely not ethical in my opinion.