401(k) Matches Linked to Company Performance

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But there are participation rules in the 401(k) law to limit the percentages that highly-paid employees can defer from taxable income via 401(k) to the average percentages voluntarily deferred by the lower-paid employees. Passing this test is most of the reason that employers initially offered any "match" at all for the masses.

As for "discretionary" matches offered "if the company does well"----hey, that concept used to be called a profit-sharing plan.

Muser of NM 10:59AM July 30, 2009

Wouldn't it be nice if an employer would contribute to an employee's 401(k) at least at the same percentage as the top executives plans. Aren't all employees, top-to-bottom, contributing to the over-all success of the company?

JAK of FL 7:01PM July 29, 2009

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