Featured Stories

2 responses to “Are 401k Plan Sponsors Poised to Cut a Popular Feature?”

  1. Harold

    The only issue I see is that plan sponsors earning over the $260,000 compensation limit (2014) will not receive their full match since the deferral % without catch-up is 6.73% and 8.84% including catch-up. This may be a deterrent for plan sponsors. Additionally, many sponsors have difficulty identifying any excess over the match limit for compensation in excess of $260,000 (2014). Now, they will have to monitor the match limit as well the reduced match limit for contributing less than the matched amount. So, a plan with a $.50 match up to 6% of compensation has a HCE who receives a 2014 match of $8,750 because compensation is $500,000. This must be adjusted down to $7,800 to comply with compensation limits. Now, applying a $.25 up to 12% match would limit the HCE down further to $4,375 (w/o catch-up) & $5,750 (w/ catch-up) respectively because deferral % is not maximized.

  2. 11/06/2013 | The Morning Pulse

    […] Are 401(k) Plan Sponsors Poised to Cut Matching Contributions? […]

Leave a Reply

If you'd like to receive occasional updates from Fiduciary News, please complete the form below. We will never share your information with any other party, and you can unsubscribe at any time.
* indicates required

Are you doing everything you can to reduce your fiduciary liability?

FiduciaryNews provides essential information, blunt commentary and practical examples for ERISA/401k fiduciaries, individual trustees and professional fiduciaries. Our chief contributor is Chris Carosa.

Follow us on Twitter and join our LinkedIn group. You can also subscribe to our RSS feed.
Find us on FacebookSubscribe to our email newsletterSubscribe to our RSS feed
The Thought Leader Express - coming soon!

FiduciaryNews is sponsored by…

Basecamp Ad

The 401(k) Fiduciary Solutions Book

Order your copy of the book now