401K via Health and Welfare benefit.

I receive a Health and Welfare Benefit from my employer of $4.50.   If i defer health insurance this is supposed to be deposited into a 401k.

However after 15 months of employment and checking 401k balances   it's as if there behind almost a year for deposits.

Does anyone know if they can hold these deposits?   I do not contribute and extra from my pay into the acct.

I can't get a straight answer from my employer.

 any thoughts would be appreciated.

Thanks 

Seb

16 hours ago, Sebricon said:

 If i defer health insurance this is supposed to be deposited into a 401k.

Did you complete a 401k deferral election form indicating your request to have the funds withheld from your pay and deposited into the 401k? This is usually a different process than the election to defer health insurance. 

Check your paystubs, is $4.50 being withheld from your pay? If so, then the employer must deposit your deferrals into your account generally as soon as possible, in many cases that means 2 - 7 days (I won't go into timing details here). 

If you made a deferral election and your funds are not being deposited, then I would suggest you go back to your employer, show your paystubs and ask where your money is. 

Sounds like an hourly prevailing wage item where the "fringe" goes into health insurance or retirement - and if retirement, it's an employer contribution and not a salary deferral unless you also have the ability to take that $4.50 in cash in your pay. It may not be and your employer just gives you a choice between contributions to health insurance or retirement.

Employer contributions have different contribution timing requirements and can often be made well after the plan year to which they relate. However, if it is a prevailing wage situation then there are state laws governing when employers are required to deposit contributions (usually at least quarterly is my recollection).

I did sign paperwork with the option to contribute some of my own pay.   I deferred withholding any of my own. So yup had a feeling it was considered employer contribution.   So the company can hold it the whole year and deposit the following year?   But I figure they do have to release it eventually.   It's over 10k, So Ive been a bit concerned.