Employee confronts boss after discovering that he has been stealing from employee's 401k account for over a year: '[I'm] contacting a lawyer!'

Here's hoping this employee-boss dispute actually gets played out in court.

Imagine having a decently steady job for over three years with benefits including a 401k. After an arduous job search in a difficult market, you think you've found the ideal setup. Sure, things have not been going great for the company as of late, but you seem valued there, and you think that you wouldn't be on the chopping block should layoffs inevitably occur.

Then, one day, you check up on the status of the money in your retirement account, and you notice something strange. When you investigate it further, you realize that the money you had been contributing from your paycheck into your 401k had not been going into that account for more than a year. In fact, it turns out that your boss was responsible for taking that reserved money from each paycheck and collecting it for himself. He just assumed you weren't careful enough to notice, but he was wrong.

I guess layoffs ended up being the least of this employee's concerns. Now, he's considering legal action to get all that well-earned compensation back into his own account.

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  • A younger employee reviews a document with his older boss in a meeting room at a modern office space.
    via Unsplash+ (Getty Images)

    Image is representative only and does not depict the actual subjects of the story.

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  • It takes a certain kind of narcissistic individual to be struggling with money and to then find the solution in taking money away from one of the employees on your team. Naturally, the person who works for you makes less than you! Clearly, this boss has no moral backbone. He also doesn't have the intelligence to cover up a scheme like this, given that there is now a documented paper trail. Good luck to you, sir! You're going to be paying a lot in legal fees by the end of this.

  • "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
    via [deleted]
  • 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.
    via [deleted]
  • I emailed my boss demanding answers and that my contributions be stopped immediately. He responsed back that he "didnt realize people were
    via [deleted]
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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.
    via [deleted]
  • However, he said he will deposit the money by 12/31 into our accounts + the lost interest. I don't trust that he will be able to follow through on his word. I'm
    via [deleted]
  • 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.
    via [deleted]
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  • A younger employee looks at a laptop screen with his older boss in a meeting room at a modern office space.
    via Unsplash+ (Getty Images)

    Image is representative only and does not depict the actual subjects of the story.

  • Brock_Landers78 Also, it should be obvious, but start looking for a new job now.
    via [deleted]
  • Homer1s ⚫ • 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.
    via [deleted]
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  • Dundah 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
    via [deleted]
  • 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
    via [deleted]
  • 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.
    via [deleted]
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  • You're doing the right thing seeing a lawyer and seeking a new position already.
    via [deleted]
  • GuitarEvening8... 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
    via [deleted]
  • 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.
    via [deleted]
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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 f d. I assume you're talking about employer contributions such as a match or profit sharing contribution.
    via [deleted]
  • 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.
    via [deleted]

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workplace-stories employee work stories toxic-workplace job work 401k Horrible Bosses company money employment toxic-work-environment
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