Is it legal for an employer to take money out of your check for an IRA and not pay into the IRA account?

Money has been taken out weekly but has not paid to the Mainstay fund which maintain my IRA. This has been going on since 10/2006.
Answer:
When you signed up for the IRA they should have told you when they will make the deposits. Most employers do it monthly. Obvisously yours is not. Talk to them and find out when they normally make the deposit. If they tell you they already have, tell them it's not there. It could be a simple mistake that doesnt involve their end. If they've just simply not put the money in, then yes, it's illegal

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Very Illegal

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No way! That is not their money. The employer is a fiduciary and has a legal obligation to deposit the money at the earliest opportunity.

File a complaint with your local labor relations board, or sue for the money.

KrazyKyngeKorny
(Krazy, not stupid)

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There is something wrong here. An IRA is an employee-funded plan. Employers don't normally deduct IRA contributions. This looks like something that should be referred to the US Dept. of Labor, which has jurisdiction over wages and benefits.

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That depends the payroll withholding paperwork you signed with your employer. IRA's are, by definition, "individual," and your employer isn't obligated to split up your comp among various accounts (although many will voluntarily do so). The money deducted might not be "gone" - just deposited into a 401k, if your employer participates in one.

Get in touch with your human resources department (or whoever), and find out where the money's been going. If you're employer can't explain it to your satisfaction (and SHOW you what's going on), tell HR you want to put a stop to the IRA withholding. It should be a matter of just filling out a few forms. You can always make the IRA deposits yourself.

Then consider calling a lawyer - although this might cost you your job. If you can't afford a lawyer, call your state's department of revenue, department of employment regulation, or the investigative arm or your state police (most states have an agency analogous to the FBI). If that doesn't work, consider calling the IRS or the FBI. Again, could cost you your job.

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Yes - it is illegal on both the state and federal level. If it is a significant sum of money, the FBI is the reporting agency. If it is below a certain threshold, the FBI will advise you to go to the state. Of course, if your withholdings are not being properly forwarded, then others' likely aren't as well - so together, these sums may meet the federal threshold. Good luck and report this immediately!