'My boss is stealing money from my 401k': Employee seeks legal action after discovering his boss has been secretly withdrawing contributions to his retirement account

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Ben Weiss • Writer and Editor
Nov 24, 2024 2:00 PM EST

We expect our employers to act in good faith. That being said, instilling all of your trust in your boss without making sure to protect yourself is a recipe for disaster, as this employee unfortunately has recently learned the hard way.

He had been consistently depositing money into his retirement account for the last few years. However, when he checked his account most recently, he soon discovered that his boss had been "withdrawing money from his paystubs" yet had not contributed that money to his 401k. When he looked into the matter further, the employee learned that his boss had been doing this since January of this past year. Now, without placing too much blame onto the employee, he should probably check his account more frequently. That being said, we have to give this guy credit for standing up to his boss and for calling him out on his nonsense when his boss attempted a half-baked explanation.

Let this story serve as a friendly reminder to always double-check that your employee is holding their end of the bargain. For more stories like this, feel free to take a look at this post about a supervisor's critical error.

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    Cheezburger Image 10431544064
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    This image is for illustration only, and the subjects are models; the image does not depict the actual subjects of the story.

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    My boss is stealing money from my 401k I have been depositing money into my 401k since 2022. I recently checked my retirement account and found that my boss
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    has been withdrawing money from my paystubs but has not been depositing money into the account since Jan 2024. Upon reviewing my account, I found that he was depositing funds in 2023 in 6 month intervals.
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    I emailed my boss demanding answers and that my contributions be stopped immediately. He responsed back that he "didnt realize people were
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    contributing" and there was an "issue with the account." That is clearly a lie since he has been facing financial hardships.
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    However, he said he will deposit the money by 12/31/24 into our accounts + the lost interest. I don't trust that he will be able to follow through on his word. I'm
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    interviewing with other companies and contacting a lawyer. I'm wondering if anyone has any advice on the matter. For reference, I live in NJ and work in healthcare.
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    Brock_Landers78 Also, it should be obvious, but start looking for a new job now.
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    Homer's ⚫ . I think it will be very important that you print up all pay stubs, if he is stealing from you it is doubtful that he will issue W-2s, so a pay stub will suffice come tax time. He is digging himself a deep hole.
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    Dundah Top 5% Commenter His choice or promising to deliver by date is odd. No banks are open and most business admin departs close from December 22 northern about till January
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    2. Thinking as if I was someone with a failing business it's perfect timing, you do all you can if christmas surge has not generated the cash reserves you need by the 20th you file for bankruptcy/creditors
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    protection on the 23nd banks and employers will not see a thing until well into the new year. Or you simple close doors for christmas and walk away.
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    You're doing the right thing. seeing a lawyer and seeking a new position already.
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    Guitar Evening8... What's the policy? My company pays out the 401k once a year.. it's annoying. but the company rule. They think it helps retain employees
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    Some_dude_in_210 • 1d ago. For your deferrals, the policy depends on how large your company is and who is auditing/reviewing the plan. But, generally, it can't be any later than 7 business days after your pay date. For employer contributions, the deadline is typically 12/31 of the following plan year, unless your plan year end falls on a date other than 12/31.
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    So, if your company is withholding deferrals. and only depositing them once a year, that's a huge No No and if the DOL knew about it they'd be fd. I assume you're talking about employer contributions such as a match or profit sharing contribution.
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    • eye_in_the_skyy 1d ago File a complaint with the department of labor. They • can and will pursue the Plan's trustee for the failure to make those contributions. They are aggressive.
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    FleasInDisguise • 1d ago. And do it soon. It took the DOL over 2 years to get my money back when my employer did the same thing. And then the second time they did it it took them over 6 mos.
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    KnaveyJonesDnD 1d ago . • Been there done that. Along with a lawyer. Lawyer costs money. DoL does not. This was the first sign the company was going belly up. Get out your resume.
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