Opinions re missing 401k deposit

[oldphd]

Quote:

Originally Posted by growing_older Wait, the hourly cost wasn't to gain the $1.52 it was to gain the entire deposit which had mysteriously gone missing, and to remove the 10x expected fee. The $1.52 was deemed close enough and no one is pursuing that.

That's correct, I wasn't worried about gaining/losing a couple of bucks on the closing fund prices, it was the missing deposit amount of $1700 that had my attention!

The 10x fee is just over $100 (supposed to be $12.50 but it was fat fingered? to $125). We've been down this road before and it got corrected with one phone call, has been 2 so far this time, we'll see. I asked DW if anyone else has complained where she worked, and she hadn't heard of anyone. Since the 401k is only 1 1/2 years old, we're not sure how many folks are in it or pay attention to balances, it could be happening but folks don't know it. Me? I routinely check balances on everything, credit cards, etc. We've had 3 cards compromised over the last several years. Catching it quick makes life easier.

[jazz4cash]

File this under "Why 401k is NOT a reliable way to save for retirement". Most employees would not have a clue they ever got ripped off and very few would have the tenacity to push for resolution. Many will hear of OP's issues and refuse to participate or just put in the minimum. Makes me appreciate Fido.

[pb4uski]

Quote:

Originally Posted by jazz4cash File this under "Why 401k is NOT a reliable way to save for retirement". Most employees would not have a clue they ever got ripped off and very few would have the tenacity to push for resolution. Many will hear of OP's issues and refuse to participate or just put in the minimum. Makes me appreciate Fido.

That would be an extreme overreaction IMO. I had 401ks with three different employers over 30 years and never once had a problem with a salary withholding for 401k not being promptly credited to my account.

[anethum]

About 8 years ago, the small company I worked for was having cash flow problems. They switched from direct deposit to paper checks. Then one of my paychecks bounced. 401(k) deposits were sometimes very late. Additionally, the 401(k) fiduciary was a tiny mom & pop operation which had made a few mistakes in the past and was very defensive anytime they were contacted about a problem. Then our small employer was bought by a very large company which was solvent. At some point, we got letters stating that penalties had been assessed to our soon-to-be former employer due to late payments to our 401(k) plan, and that these penalties (per DOL rules, I believe) would also be deposited on a pro-rated basis to our accounts.

And then our big new employer began laying most of us off, but that's not unusual.