ST Alpha - "hmmm, why would they defer until the end of the year? -- nm" (Reading a Post)

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In response to "Random 401k thing. A couple of years ago, my employer stopped giving our 401k employee match in each paycheck" by ty97

hmmm, why would they defer until the end of the year? -- nm

Posted by prayformojo (aka mayhem) Oct 20 '17, 08:32

(No message)

Responses:

couple of different reasons - decline Oct 20, 08:35 3
- got it. thanks -- nm - prayformojo Oct 20, 08:39
- true, but on 2 - they can use that money to offset the employer contributions, so thats really a wash really. -- nm - tRuMaN Oct 20, 08:36 1
  - it is, but it also becomes a cash-flow benefit -- nm - decline Oct 20, 08:37
A) They get to keep the money all year and make money off of it, rather than handing it out -- (edited) - ty97 Oct 20, 08:35 10
- Your IM is basically why we acrue vacation days and don't get them in our "account" as a lump sum at the start of the year. In IL if you leave, you - oblique, SuperFeud Champion and Tenth Astronaut Oct 20, 08:40
- you IM depends. The plan must specifically state the end-of-year requirement -- nm - decline Oct 20, 08:36 5
  - 99.999999% sure it does -- nm - ty97 Oct 20, 08:37 4
    - Do you know the least time I read my plan docs? - ty97 Oct 20, 08:37 3
      - just grab your Summary Plan Description (it's probably on your plan's website or your company's intranet) -- nm - decline Oct 20, 08:38 2
        
        As I mentioned, my father used to work for the company, and he'd read this stuff voraciously. - ty97 Oct 20, 08:44
        
        werd. -- nm - tRuMaN Oct 20, 08:38
- oooh, your im is sneaky. I would of assumed they would of had to pay that out -- nm - Beaker Oct 20, 08:35 2
  - Might depend on the plan. I think my old plan still gave you your match even if you’d left. -- (edited) - znufrii Oct 20, 08:37
  - I'm *pretty* sure they don't, not 100% - ty97 Oct 20, 08:36
cash flow management maybe? money they don't payout is money they earn interest on / don't have to pay interest on -- nm - Beaker Oct 20, 08:32

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