Does an employee have to invest in order for an employer to contribute? - Michigan | 401k Questions

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Asked 9/13/2008

Does an employee have to invest in order for an employer to contribute? - Michigan

Should an employee invest in their own 401k in order for the company to match the contribution?

In other words, if an employer contributes to an employee's 401k, should that only be if the employee MADE a contribution for that pay period?

Any legal advice is appreciated.

Thanks,
Michigan

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Answer 1/1 - Submitted 9/14/2008

Well it all depends on the policy of your employer.However what usally happens is your employer will match a precentage of what you the employee pays into your 401K. If you do not pay in then the employer will not pay anything. You need to ask your employer how much they match on what you pay in. You should also be able to determine how much they have paid in by going on the web site of your 401 plan.

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