HR Not Depositing My 401k: What to Do If Contributions Are Missing
Money is being deducted from your paycheck but not appearing in your 401k. This is serious—here's how to fix it.
Key Takeaways
- 1Missing 401k deposits are a violation of federal law (ERISA)
- 2Employers must deposit contributions within 7 business days for small plans
- 3Large plans (100+ participants) have even shorter deadlines
- 4Document everything: Pay stubs, 401k statements, correspondence
- 5Start with HR, then escalate to plan administrator, then DOL
- 6You may be entitled to lost earnings on delayed contributions
First: Verify There's Actually a Problem
Before assuming the worst, check these common issues:
- Check timing: Deposits can take 7-15 business days to appear
- Verify pay stubs: Was the deduction actually taken?
- Check the right account: Some plans have separate holding accounts
- Review vesting schedule: Match may be there but not yet "vested"
- Look for employer match separately: Often shows as different line item
- Compare multiple pay periods: One-time glitch vs ongoing problem
Why This Happens
Missing 401k deposits usually fall into these categories:
- Administrative error: Paperwork mistake, system glitch, new employee setup
- Cash flow problems: Company using employee money for operations (illegal)
- Payroll processing delays: Third-party payroll taking too long
- Plan administrator issues: Problems on the receiving end
- Deliberate misuse: Employer theft of retirement funds (rare but serious)
- Company financial distress: Often an early warning sign
What the Law Requires
Under ERISA (Employee Retirement Income Security Act), employers must:
- Deposit contributions "as soon as reasonably possible"
- Small plans (under 100): Within 7 business days
- Large plans (100+): Even shorter—must be deposited promptly
- Cannot use employee contributions for company purposes—ever
- Must make you whole for any lost earnings on late deposits
- Failure to comply is a breach of fiduciary duty
Exploring your retirement options?
Our 60-second quiz matches you with the right account type
Action Steps: How to Fix This
Follow this escalation path:
- 1. Document everything: Pay stubs, 401k statements, dates, amounts
- 2. Contact HR in writing: Email creates a paper trail
- 3. Request written explanation: When will deposits be made?
- 4. Contact plan administrator: The company that manages your 401k
- 5. File DOL complaint: If not resolved within 2-3 pay periods
- 6. Consult ERISA attorney: For persistent or large amounts
| Contact | When | How |
|---|---|---|
| HR/Benefits | First step | Email + follow-up call |
| Plan Administrator | If HR unhelpful | Number on 401k statement |
| Department of Labor | After 2-3 weeks no resolution | Online complaint form |
| ERISA Attorney | If significant amount or pattern | Free consultation |
What If Your Employer Is Insolvent?
If your company is in financial trouble, your 401k contributions become a priority creditor claim:
- Your contributions are held in trust—not company assets
- ERISA provides strong protections for employee contributions
- Employer match is company money—less protected in bankruptcy
- File DOL complaint immediately if you suspect financial distress
- Join any class action lawsuits for recovery
- Your contributed money is likely recoverable; match may not be
This Is Serious
An employer using your 401k contributions for company cash flow is not just an error—it's potentially a federal crime. If HR is evasive or you see a pattern of missing deposits, escalate quickly. You have strong legal protections, but you need to act.
Take Control of Your Retirement
When employers mishandle your 401k contributions, it highlights the importance of controlling your own retirement assets. Consider:
- Rolling over old 401ks to a Gold IRA you control
- Diversifying beyond employer-controlled accounts
- Physical gold that can't be "not deposited"
- Direct ownership with transparent custodian
- No dependence on employer's financial health
Frequently Asked Questions
1How long should 401k deposits take?
Legally, "as soon as reasonably possible" but no later than 7 business days for small plans. In practice, most contributions should appear within 1-2 pay periods. Longer delays warrant investigation.
2Can I get back money my employer didn't deposit?
Yes. Under ERISA, you're entitled to both the principal amount AND any earnings you would have made on that money. The DOL can help recover both.
3Should I stop contributing if deposits are missing?
Don't stop yet—document the problem first. Stopping contributions means losing employer match if it's being deposited. Focus on fixing the issue while continuing to build evidence.
Related Articles
Helpful Guides
Interactive Tools
Ready to Protect Your Retirement?
Join thousands of Americans who have secured their savings with physical gold. Augusta Precious Metals makes the process simple.