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401k question, is this legal or not

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Pleaseanswer

Junior Member
Hired in 2011. Company offers and gives 3% for 6% 401k match, 6 year vesting. Company only gives match once per year, around Feb.

In Jan 2015 company says that they will not be contributing for previous year. The notice came out at the time the contribution should've been deposited.
 

cbg

I'm a Northern Girl
It may be legal or it may not. It depends on whether the plan document says that the match is discretionary or not.

I have not read your company's plan document and neither has anyone else here.
 

davew128

Senior Member
While CBG's answer is correct, that match is almost assuredly discretionary as being mandatory could put the owners and higher paid employees in a situation where they can't put anything in for themselves or they'd fail discrimination testing. I've seen places jump through hoops returning contributions to owners at companies where a lot of eligible lower paid employees didn't contribute to the plan (which is the actual problem mathematically).
 

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