ST Alpha - "couple of different reasons" (Reading a Post)

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In response to "hmmm, why would they defer until the end of the year? -- nm" by prayformojo

couple of different reasons

Posted by decline (aka Decline) Oct 20 '17, 08:35

off the top of my head:

1. you can implement an end-of-year employment rule, so only people employed as of Dec 31 get the match.

2. with a vested match, if you give it per pay period you may be giving company money to partially vested participants who won't cash it out. While that money stays in the plan as forfeitures, it is cash that the employer can not access immediately.

Responses:

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

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couple of different reasons

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