Nov 9, 2025
Millions of hardworking Americans spend their careers diligently contributing to a 401(k) and building a retirement nest egg. But what would happen if your contributions went missing?
That scary thought became reality for California resident Amanda Otter, who told The Wall Street Journal that she’s missing over $50,000 in contributions and projected returns from her employer-sponsored retirement plan in an article published Oct. 18 (1).
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A 401(k), which often represents a “set-it-and-forget-it” style of saving, holds the promise of financial security as long as contributors make routine investments. But one day, Otter logged in to her account only to find a strangely low number. She noticed that a couple of thousand dollars deducted from her paycheck for a contribution in 2022 never fully made it into her 401(k). Unfortunately, that was only the beginning.
What followed were three years of missing contributions from an employer that eventually went belly-up, and pleading with the Labor Department for help.
Her employer’s mismanagement
Payroll records provided by Otter show retirement plan deductions were made from her pay, but her 401(k) records show those deductions weren’t deposited into her account for part of January 2022 and all of that February, according to The Journal. Contributions resumed the following month, but stopped again from April 2022 to November 2023. Several more contributions were skipped in 2024.
Meanwhile, her employer, Information Technology Partners, was struggling behind the scenes, eventually facing millions of dollars in lawsuits, reports The Journal.
Unfortunately, delayed or paused contributions aren’t uncommon for small companies facing financial problems, Ali Khawar, a former assistant secretary at the Labor Department’s Employee Benefits Security Administration, told The Journal. While employers are required to deposit contributions once it's feasible, a lack of oversight can lead to trouble, especially considering that retirement plans with fewer than 100 participants are generally exempt from annual audits.
Some of Otter’s former colleagues also reported skipped retirement plan contributions, per The Journal, along with occasionally missed paychecks and health premiums that weren’t paid on time. Otter reported receiving two paystubs without actually getting her salary.
The small company promised to fix its problems, despite its financial difficulties. Otter and her colleagues weren’t really sure what to do.
“We didn’t feel we had much leverage,” Otter’s husband, Dan, told The Journal. “What was she supposed to do, quit?”
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What the Labor Department could do
Otter’s husband contacted the Labor Department in 2024 and was told they were investigating the matter. The Labor Department can try to get companies to pay the contributions owed, plus returns that would have been earned, voluntarily, but if the company doesn’t comply, the agency can bring lawsuits and penalties. But sometimes, a company will “just close their doors,” leaving little behind to compensate employees, Khawar told The Journal.
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The Labor Department has recouped nearly $24 million in missing funds through civil action over the last decade and over $14 million through criminal investigations. Around $260 million was also voluntarily returned from companies that failed to deposit 401(k) contributions on time, reports The Journal.
In Otter’s case, it’s unclear if she’ll recover any funds. Information Technology Partners dissolved back in March 2025, and Otter estimates the firm owes her around $100,000, including missing contributions, projected earnings, lost wages and nonreimbursed expenses. She’s had to tap her emergency savings as she continues to deal with the emotional and financial stress.
“It’s been this persistent sick feeling that has never really gone away,” she said.
What to do if funds go missing
The thought of your hard-earned retirement earnings going missing is scary. Even if you think it could be a simple glitch, it’s important to act quickly.
Much like Otter, it’s a good idea to stay on top of where your money is going. Confirm with your pay stubs that funds were indeed deducted for your workplace retirement plan and document the dates and amounts of any contributions that were supposed to be deposited. If you find any funds missing, reach out to your company’s payroll or human resources department.
If your employer is unresponsive, reach out to the plan administrator to get a transaction history. You might want to consider escalating the issue with the Department of Labor’s Employee Benefits Security Administration.
In the midst of these actions, you may also want to weigh the pros and cons of pausing contributions until things stabilize at the company.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Wall Street Journal (1)
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Chris Clark is a Kansas City–based freelance contributor for Moneywise, where he writes about the real financial choices facing everyday Americans—from saving for retirement to navigating housing and debt.
