Expert: Allen - 6/5/2007

Question
As a 2006 college graduate, I don't know much about 401k plans.  When I
was hired by my company in August 2006, I completed all the paperwork for
a 401k and assumed my 6% contribution was being deducted from my
paycheck and matched with a similar amount by my company.  However,
when my tax preparer recently completed my tax returns, she pointed out to
me that my W-2 showed no evidence of the 401k. An embarrassed HR person
found my properly completed paperwork, but it apparently didn't get into the
system.  Is there any way for the company to make an adjustment to make
me whole, as I have missed out on not only my company's matching
contribution, but also the stock market rise?  Thank you!

Answer
The company must make you whole. The IRS has detailed a procedure for them to do this. It is described in Revenue Procedure 2006-27. I would mention this to the HR department.

If they do not make you whole, you can request assistance from the local office of the U.S. Dept. of Labor - Employee Benefit Security Administration.