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How Long Legally Can An Employer Hold Your 401k Contribution Prior to Wiring The Cash

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  • How Long Legally Can An Employer Hold Your 401k Contribution Prior to Wiring The Cash

    I believe my wife to be a victim of fraud on the part of her employer. Her company has been through difficult times lately. My wife who is very careless and does not review her 401k plan frequently has been making contributions all year totalling in excess of 3k.

    We found that ALL of her contributions this year have not found their way to her 401k. It is over 4 months obviously.


    1) What are the rules? I have read in the past that the employer cannot hold longer than 1 month
    2) What recourse do we have? Who can we contact in NYS government to complain.

  • #2
    The law says a "reasonable" time, which has generally been interpreted to be no longer than 15 days following the end of the month in which the contributions were deducted. 401(k)s are regulated by the federal Dept. of Labor, not state governments, under ERISA. The federal DOL is who(m) she would file the complaint with.
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