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Asked 6/21/2010
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401k My Employer was matching my 401K contribution. I recently lost my job. My employer makes there 401K contribution once a year. I make my 401K contribution bi-weekly. My employer advised me I dont qualify for the 2010 contribution. I contributed to my 401K for the 6 months I was employeed in 2010. Are they required to make a partial contribution for the 2010 year? |
Answer 1/3 - Submitted 6/21/2010
No. There are requirements specifical stated in the plan document stating what you must meet to receive a year end contribution. The most common (in almost every plan) is that you are employed on the last day of the year. Also common is miinimum hours worked.. Read the Summary plan document for the specifics, but they are most likely right. (they are the one's that decide the requirements)
Answer 2/3 - Submitted 5/23/2011
The details for when matching contributions are paid and who qualifies for matching contributions is determined by each plan. It is very common for plans that only pay the matching contribution once a year to require that you are employeed on the date the contribution is paid to receive it. This is completely legal and acceptable if the plan documents state that this is how the matching contributions are paid.
Answer 3/3 - Submitted 1/20/2012
No there is no requirement for the company to match all or a portion of your contributions. Since the match is voluntary for companies to participate in they can determine the rules of the money they match. Almost all companies require that you be actively employed with them on the date of the match. This means since you left before the date of the match you would recieve no match for the money that you contributed to your 401k plan. When a company decides to match funds they do it as a benefit and as a way to retain employees. I realize you lost your job and it may have been due to downsizing so it is not the same as your quitting to go to another employer. However, that doesn't change the way the company pays the money out. You are not actively employed with them at the time of the payout so you are not eligible.
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