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I specifically made the contribution changes to my 401K in December to start Jan 2016 to put 80% of my pay into 401K this month.
The company switched payroll vendors at the end of December. And, as of my first paycheck in 2016 exactly zero 401K deductions were made. Fidelity is the vendor the company uses, but they can't help as everything is initiated by the company. Not only that, but because zero 401K deductions took place, I didn't get my 401K matching this pay cycle.
Depends on when you did it December - it usually takes one to two pay periods to take effect. I changed my contribution in early January but it was already too late for it to take effect on the Jan 15th paycheck. I'm hoping to see it on the 31st. We use Fidelity also but it all depends on your company's payroll cycle.
I know it can take up to 2 cycles to complete, depending, although in 2015 it only took 1 pay cycle for changes to be made at Fidelity. However, in absence of receiving my requested change in time for the Jan 15 payroll, they should have at least kept my previous contribution rate, which was 6% for the last month of 2015.
I made the change in contribution % on 12/26/15, with the hope the change would be in effect by the Jan 15 payroll. I didn't expect zero 401K deductions to be made in that first paycheck, and that actually goes against their own policy of forcing every employee to contribute at least 3% to 401K.
HR's response: "Oops yeah, it affected several employees due to our change from one payroll vendor to another. Double contributions for the next payroll won't be happening, sorry."
I'm still waiting to find out how the company is going to handle 401K matching that didn't occur for the Jan 15th payroll.
Turns out it had nothing to do with Fidelity or it taking up to 2 payroll cycles to change an election. They didn't test or catch this problem at the time they transmitted payroll to the new vendor.
And because the company outsources their HR helpdesk function to some other country, those reps can never answer questions and have to contact the company "benefit team."
My goal is to fund my 401K for 2016 by the end of April, in case of a layoff. There are layoffs at least twice a year at my employer and I haven't even been there a year yet. This is a proactive move. The yearly contribution amount maximum doesn't change, I'm just compressing the timeline for myself.
I specifically made the contribution changes to my 401K in December to start Jan 2016 to put 80% of my pay into 401K this month.
The company switched payroll vendors at the end of December. And, as of my first paycheck in 2016 exactly zero 401K deductions were made. Fidelity is the vendor the company uses, but they can't help as everything is initiated by the company. Not only that, but because zero 401K deductions took place, I didn't get my 401K matching this pay cycle.
Yeah I'll be contacting HR to complain loudly.
Aren't you glad it didn't go through right away? lol
I did the same, and mine didn't go into effect until today (second paycheck of the year).....with the market trend, the delay was a good accident.
It takes about 7 to 9 days after the payroll for the 401K funds to actually get funded into my investment choices at Fidelity, so my 401K contribution would have been invested this week. Now, with the delay, assuming they get their problems worked out, the next window of getting funded will be around Feb 10th, give or take.
Well it only took 4 business days from the last payroll for the 401K to be funded...and exactly as I predicted, my shares were purchased on the highest day in the market for the business week (Thurs 2/4), and at the end of the day when the market had rebounded a bit and was up.
No, not the next day when the market went down by over 200 pts and not today where the market is down yet again another 200+ pts.
Yes, I know timing the market is not considered a good thing, but I don't care... I'd rather have had those shares purchased when the market is down another 400+ pts than not.
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