S
Susan Smith
Guest
What is the name of your state?We live in California. My husband's company makes matching contributions to his 401k plan. They contribute 100% of his first 3% and 50% of his next 3%. He contibutes the maximum of $13,000. His company allows him to deduct this contibution all within the fist three months of the year.
He recently noticed that this year the company had only made matching contributions of $900 to his account and had stopped contributing in March. When he asked both his HR department and the plan administrator about this, he was told that the company only makes matching contributions for the period of time he is contributing. Since he contributed his entire allowed amount by March, they stopped adding their share at the same time. They insist that the matching contribution is based on his monthly contribution--if he isn't having anything deducted, they aren't matching.
Needless to say, we don't agree. The plan administrator at Fidelity was no help and his response was, "that's the way it goes". What is our recourse?
He recently noticed that this year the company had only made matching contributions of $900 to his account and had stopped contributing in March. When he asked both his HR department and the plan administrator about this, he was told that the company only makes matching contributions for the period of time he is contributing. Since he contributed his entire allowed amount by March, they stopped adding their share at the same time. They insist that the matching contribution is based on his monthly contribution--if he isn't having anything deducted, they aren't matching.
Needless to say, we don't agree. The plan administrator at Fidelity was no help and his response was, "that's the way it goes". What is our recourse?