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Chapter 3. How Safe Is Your 401(k) Money... > Keeping Track of Your Money - Pg. 31

How Safe Is Your 401(k) Money? 31 Plan Sponsor The owner is our first stop on the money trail, because the 401(k) process begins with the group that takes money out of your paycheck. This group is called the payroll department . (Tip: Never yell at someone in payroll. They may"lose"your paycheck. ) The payroll department is responsible for deducting 401(k) contributions from your paycheck every pay period. Some companies take 401(k) deductions less frequently than every pay period, so check your pay stub(s) to determine how fre- quently you contribute to your 401(k). The plan sponsors have a legal obligation to make sure your 401(k) plan operates according to the law. This means that they can't take money out of your paycheck and leave town with it. If they did (in other words, they never deposited your contributions into your 401(k) account), they would go to jail--it's that simple. That brings up the question: Could someone take your money after payroll does its thing but before it goes into your account? The answer is yes. Is it likely to happen? The answer is no, not very likely at all. So an obvious question is, " How soon does my money get invested after it comes out of my pay- check?" This is a very good question, and an example of supreme enlightenment (a.k.a. an educated consumer). Warning!