Greetings!
My wife retired from a private school in early June. They have a 401k, though they are a nonprofit (not sure if this matters, just throwing out details). The 401k has only existed for 1 1/2 years since the pension was frozen. The payroll processing is subcontracted to a company (I don't know details of who is responsible for the actual deposits to accounts, SS, 401k, etc., but I assume it's the processing company).
Normally, they pay for a school year through August, even though you finish teaching in June. Then pick up for the next school year. When retiring, they process all remaining paychecks at the end of June (and stop health insurance, I assume to save a few $$$, but that's conjecture on my part).
The 401k deposits have never coincided with payroll dates. Every job I've had they're the next day. Her's have been weeks away, even early, very irregular. From searching I assume they're supposed to be in by the 15th of the month following withholding, but earlier is expected.
She gets paid twice a month. The end of May check's 401k deposit was June 8th. All is up to date at this point. June 15th there is one check. End of June are multiple checks (ones that would be processed through mid-August). The quarterly match from her employer hits on July 10th +/- as always (including the income from those checks that we're still waiting on the deposits from). Monday, July 16th, a deposit is made from her withholding presumably for all 5 checks, June 15th and 4 at end of June. We wanted to max out her tax deferred in order to roll to a Roth, so these were large numbers, and the last check was small since we'd hit the annual limit. The total deposit was 1 of the big checks short of the total that should be there.
In the past week we've not had success getting this rectified. The payroll company doesn't want to deal with us. They want to deal with the school. The school is technically off but we've had contact from the business manager who is looking into it (cooperative, and I hope she thinks we're right given past experience where we've found problems with the processing company and been correct). The payroll company thinks we wanted more money withheld, but says we hit the annual max. We know that, we just want the deposits they withheld to be deposited.
I'm not sure how long is reasonable to wait before pushing this. I found a Dept of Labor reference for complaints, and am wondering if that would be the right place to complain to. We would just like the final deposit made so we can roll over and carry on, but can't get them to respond. While they delay deposits (float's not worth much, this can't be a good sign), my impression is that the processor is not very capable. Low bidder, etc.
Very frustrated with the situation, but would like input from those of you with cooler heads and (hopefully!) related experience to guide me.
Thanks for any and all input!
oldphd
My wife retired from a private school in early June. They have a 401k, though they are a nonprofit (not sure if this matters, just throwing out details). The 401k has only existed for 1 1/2 years since the pension was frozen. The payroll processing is subcontracted to a company (I don't know details of who is responsible for the actual deposits to accounts, SS, 401k, etc., but I assume it's the processing company).
Normally, they pay for a school year through August, even though you finish teaching in June. Then pick up for the next school year. When retiring, they process all remaining paychecks at the end of June (and stop health insurance, I assume to save a few $$$, but that's conjecture on my part).
The 401k deposits have never coincided with payroll dates. Every job I've had they're the next day. Her's have been weeks away, even early, very irregular. From searching I assume they're supposed to be in by the 15th of the month following withholding, but earlier is expected.
She gets paid twice a month. The end of May check's 401k deposit was June 8th. All is up to date at this point. June 15th there is one check. End of June are multiple checks (ones that would be processed through mid-August). The quarterly match from her employer hits on July 10th +/- as always (including the income from those checks that we're still waiting on the deposits from). Monday, July 16th, a deposit is made from her withholding presumably for all 5 checks, June 15th and 4 at end of June. We wanted to max out her tax deferred in order to roll to a Roth, so these were large numbers, and the last check was small since we'd hit the annual limit. The total deposit was 1 of the big checks short of the total that should be there.
In the past week we've not had success getting this rectified. The payroll company doesn't want to deal with us. They want to deal with the school. The school is technically off but we've had contact from the business manager who is looking into it (cooperative, and I hope she thinks we're right given past experience where we've found problems with the processing company and been correct). The payroll company thinks we wanted more money withheld, but says we hit the annual max. We know that, we just want the deposits they withheld to be deposited.
I'm not sure how long is reasonable to wait before pushing this. I found a Dept of Labor reference for complaints, and am wondering if that would be the right place to complain to. We would just like the final deposit made so we can roll over and carry on, but can't get them to respond. While they delay deposits (float's not worth much, this can't be a good sign), my impression is that the processor is not very capable. Low bidder, etc.
Very frustrated with the situation, but would like input from those of you with cooler heads and (hopefully!) related experience to guide me.
Thanks for any and all input!
oldphd