‘Apparently, I Was Zero Years Old’ — Employee Discovers Payroll Error That Blocked Their 401(k) For Years

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Imagine working for years only to find out your employer’s payroll system thinks you’re a newborn. That’s what one Reddit user recently discovered after realizing a clerical error had kept them from contributing to their 401(k).

The post, shared in r/personalfinance, described how the employee’s company entered their hire date as their birthdate. Because of that single mistake, the system decided they were “zero years old” — and therefore too young to join the company’s retirement plan. The user, who said they were 47, went years without 401(k) access despite repeatedly asking when their contributions would start.

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The employee explained they were told multiple times by their manager that enrollment would happen “automatically.” It never did. When they finally called the payroll company, they learned the error that had blocked their participation all along.

Fellow Reddit users quickly pointed out that this type of issue should have been caught much sooner. Employers are required to perform annual compliance reviews of their 401(k) plans and verify employee eligibility. One commenter wrote that the situation amounted to a missed deferral opportunity — a term used by the IRS when an eligible employee is wrongly excluded from a 401(k) plan.

According to the IRS, if an eligible employee isn’t given the chance to contribute, the employer must make things right. That means making a qualified nonelective contribution — money the employer deposits into the employee’s account to make up for the missed savings opportunity.

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Typically, the corrective contribution equals 50% of the amount the employee would have deferred, plus any lost earnings. Employers must also add any matching contributions that would have been owed during that time. If the mistake is discovered quickly, the IRS may allow for a smaller correction under certain safe harbor rules.

Commenters who had experience in benefits administration shared advice for anyone in a similar situation:

• Request retirement plan documents. Ask for the official plan document to confirm eligibility rules.

• Document communication. Create a timeline of who you spoke with and when. Save any emails or written records.

• Notify HR and retirement plan contacts in writing. Clearly explain the mistake, include dates, and cite the IRS correction requirements.

• Ask for correction through a QNEC. This ensures you receive compensation for missed contributions and matching funds.

• Escalate if necessary. If the company doesn’t act, the U.S. Department of Labor oversees 401(k) compliance and can investigate.

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As one commenter put it, “The squeaky wheel gets the grease.” Being persistent — and documenting every step — can make all the difference.

While being labeled “zero years old” is an extreme example, it highlights how fragile retirement systems can be when small data errors go unchecked. For employers, it’s a reminder that annual 401(k) compliance reviews aren’t just paperwork — they’re essential safeguards. For employees, it’s a cue to regularly review pay stubs and confirm that retirement contributions are being made as expected.

After all, a single wrong date shouldn’t stand between you and years of lost retirement savings.

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This article ‘Apparently, I Was Zero Years Old’ — Employee Discovers Payroll Error That Blocked Their 401(k) For Years originally appeared on Benzinga.com