Employer never set up 401k, but my contributions were deducted, how much interest did I lose out on 2021?

Read the Story

Show Top Comments

Yes, they are required to also contribute lost earnings. Looking at the performance of the target date fund in your 401k plan that is appropriate based on your age is a reasonable way to approach this, given that the target date fund would have been the default assets selected by the plan for you.


It wouldn’t be interest but rather gains in price. What did you tell them to invest it in? You could get the ticker symbols for the funds you chose and use a site like Yahoo Finance to find their values each month of last year plus today to see how much they would have gone up.


PLAN ADMINSTRATOR HERE Fidelity will do the calucation – they (the company) just need to fund the account and code the payroll dates ​ EDIT to clarify “they”


If they set up a 401k now, the TPA or 401K vendor will calculate the lost earnings based on Erisa rules and will add it to your account. Actually this one may also have QNEC as well. They will have to talk with the 401K vendor/TPA on how to legally rectify the situation.


They really F***’d up. You should have had online access to my Fidelity (netbenefits) acct within a month of starting.