401k Contribution Upon Resignation

[401kQuestion]

I live in and am employed within the state of Oregon. I am fully vested within my company's 401k plan. My company contributes the employer match 1 time annually, after the end of each calendar year. If I resign, and give more than 48 hours notice, how long does the company have to contribute the employer match component into my 401k account?

 

[Dave1952]

Sorry, you don't give enough information. Have you discussed this with the HR dept? This information should be in the "employee handbook" or the ERISA stuff.

Good luck

 

[cbg]

The answer to your question is not determined by law, but by the plan document governing your 401k. Only your HR department or the plan administrator can tell you.

 

[swalsh411]

You question seems to assume they have to do it early and that might not be the case. Do you realize how much of a PITA it would be to make a contribution every time somebody terminated? And what if they are re-hired in the same year? Do they have to give it back? Administratively it makes much more sense to make the contribution at the same time you would have had the person not left, and I bet that's what your plan document says.

 

[nextwife]

Additionally, If you terminate your employment before X date, under many plans you may become inelligable for the matching funds. I worked for an office in which if one were not employed any longer as of November 30th, one did not qualify for any match at all. You need to read the qualifying requirements.

 

[swalsh411]

Additionally, If you terminate your employment before X date, under many plans you may become inelligable for the matching funds. I worked for an office in which if one were not employed any longer as of November 30th, one did not qualify for any match at all. You need to read the qualifying requirements.

I know it's legal but I hate hate hate it when plans do that. It essentially makes it impossible to get all the match you have earned.

 

[Zigner]

I know it's legal but I hate hate hate it when plans do that. It essentially makes it impossible to get all the match you have earned.

Another way to look at it is that in order to "earn" the match, one has to remain employed until a certain point in the year...

 

[cbg]

I know it's legal but I hate hate hate it when plans do that. It essentially makes it impossible to get all the match you have earned.

Well, no, since you haven't earned it until you reach the date of payout; continued employment until then is part of the qualification.

 

[davew128]

I know it's legal but I hate hate hate it when plans do that. It essentially makes it impossible to get all the match you have earned.

Never seen a plan that DIDN'T do that. Not only is it an incentive for the employee to stay, but if they leave it makes the wages ineligible and therefore easier for the company to pass the ACP test.