401(k) safe harbor non-elective contribution

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boridi
Posts: 17
Joined: Sun Jul 14, 2013 1:33 pm

401(k) safe harbor non-elective contribution

Post by boridi » Tue Sep 10, 2019 6:04 pm

My former employer made a 3% non-elective contribution to the 401(k) plan of the workers, regardless of how much the workers contributed. The non-elective contribution for year X was usually deposited in March or February of Year X+1. I left the company halfway through the year and rolled over the 401(k) to an IRA shortly after.

Is the employer still required to give me the 3% non-elective contribution? I remember many years ago someone in the company's HR dept said that I would still get it if I left halfway through the year. However, I have already rolled over the 401(k) and I left on bad terms - they would love to not give me the money. I do not know if the plan documents said anything specific about this. Would they get in trouble as a safe harbor plan / get in trouble for discrimination testing issues if they did not give me the 3%?

Thanks!

CoastalWinds
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Joined: Sat Apr 06, 2019 8:28 pm

Re: 401(k) safe harbor non-elective contribution

Post by CoastalWinds » Tue Sep 10, 2019 6:57 pm

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Svensk Anga
Posts: 568
Joined: Sun Dec 23, 2012 5:16 pm

Re: 401(k) safe harbor non-elective contribution

Post by Svensk Anga » Wed Sep 11, 2019 9:00 am

My former employer had a similar non-elective company contribution. The summary plan description specified that one had to be employed as of December 31 in order to receive that year's contribution. There were some exceptions like retirement, death, or disability. There were vesting rules for this money too.

You would have to check with your plan's SPD to determine your company's rules.

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