Was My 5% Really Coming Out Of My 401k?

[xoxo]

Just found out today that the 5% deferral was also being duducted seperately out of 401k....Because now that we are receiving our 5% back and I amongs others have just received 2 of those checks....One of the checks is strickly from 401K????Is that possible?

 

[oldiebutgoody]

Apparently the 5% deduction was made BEFORE the 401k deduction, so your 401k also had 5% less put into it. Now, they have to put that 5% into the 401k, as well as send you a check for the remainder.

 

[xoxo]

ok..thanks...

 

[xldinspector]

There was never any deduction from your 401(k) itself. Check your transaction history at the Fidelity website to confirm this. There was approximately 4.25% (the 5% was calculated against base pay not gross pay) less contributed each paycheck. Your contributions are based on gross pay which was reduced by the deferral. Consequently, now that that money is being paid back your contributions are calculated against the higher (~4.25% more) gross pay. I don't know of anyone receiving a separate check for 401(k) disparities, at least not in maintenance.

 

[xoxo]

Well, I spoke to payroll(the one person we have employed there, well, she is the only one who answers the phone) and she told me straight out of her mouth to my ears..."one of your 5% checks is from your 401k" I even questioned her on that...and she said "Yes it is from your 401K" so, unless she does not know her job...which I am sure she probably doesnt...just from the conversation alone...then I really am confused still about the whole thing. Maybe someone else can call payroll and find out. I am just basically saying what the person said to me. <_<

 

[xldinspector]

Did you check with Fidelity yet? Since they administer the 401(k) they would know what's going on. Also, Fidelity is not subject to our contract(s) insofar as withdrawing from our 401(k)s. What is in there is ours and the company cannot withdraw it, even the matching funds. The only control the company has is over how much goes in and that is controlled by whatever percentage you have established for contributions. If you're vested then all the money is yours.
In maintenance there are no separate checks for for deferral repayments. The payments are included in our regular paychecks just as the deferrals themselves were handled.
Again, check with Fidelity.