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Originally Posted by DRU
I guess I'm kind of confusing interest baring accounts with a 401k. Seems like the employer is earning interest with our money in their bank account, but if the money was in our 401k the entire time it would benefit us, not the employer.
Let's say my 401k is invested in a stock that hits big one day. Well if some of my money is still in my employer's account instead of my own then I miss out on that extra money...even though it's mine to begin with.
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Exactly. They don't have to deposit that money the exact day they take it out of your paycheck. They usually transfer the money twice a month to the brokerage. It is unfair but perfectly legal. All of the days that the money sits in their account you get nothing on it. The only law I am aware of is that the money has to be put there in "fair amount of time".