QUESTION:

I work for a small company and have contributed to a 401(k) for over a year. However, our plan administrator makes contributions very irregularly -- every three to four months -- even though the money is deducted regularly from each paycheck. Of course, I have been losing money. Is there anything I can do?

ANSWER:

What is happening in your workplace not only feels wrong, it is highly illegal.

The law clearly states that salary deferral contributions to 401(k) plans must be deposited into the trust of the plan account no later than 15 business days after the end of the month in which the salary would otherwise have been paid to you in cash.

Employers who fail to make a timely deposit -- and it sounds as if you are in the hands of an untimely depositor -- are subject to penalties. Not only that, but plan fiduciaries -- those, like your employer, who are responsible for safeguarding plan assets -- are personally liable for transgressions. That makes two doses of strong medicine for wrongdoers.

Ask your employer if he or she knows about this rule. Some small employers are unaware of some of these requirements -- and may simply need a slight push or shove from one who is in the know about the law.

Of course, that bromide about ignorance of the law being no excuse is absolutely true, too. The Employee Retirement Income Security Act (ERISA -- 29 U.S.C. § 1001 and following) is the federal law that governs employee benefit plans. If you think you have been seriously harmed, contact an ERISA lawyer or the local Department of Labor.