Company 401K Compliance
Posted in the 401K Forum
#1 Mar 4, 2013
Our company match our 401K contribution .35c(35%) for every $1.
Our company was acquired/purchase by company xyz since 2002. Company xyz is contributing .25c for every $1 to their employee.
Since 2002 to 2013 our previous company 401K matching of 35% was being honored. Recently, management call the remaining employees that was being match at 35% and notify us that Wells Fargo(our investor) notify them that they can no longer match us @ 35% due to their compliance requirement.
My question is, was this a Wells Fargo decision or my current company management?
Since: Dec 13
#2 Dec 12, 2013
This completely depends on the arrangement of the merger and the decisions of the owners. If they kept the two plans separate they may be able to get away with this. But eventually, as expected, they will probably adopt one plan into the other. There would be no compliance requirment that will keep you at 25% or 35% match as most matching provisions are completely discretionary if it is a non safe harbor plan. It is all up to the owners, though, it may have been at the suggestion of a WF advisor.
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