401k Match Issues

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B73
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Location: Corning, NY

401k Match Issues

Post by B73 » Mon Dec 30, 2019 11:32 am

My wife’s employer (local hospital) has shown on her pay stubs they have matched her 401k every paycheck for the year, but when you look at her 401k portfolio NO employer match has been credited all of 2019, just my wife’s contributions. My wife says they will deposit the lump sum at the “end of the year” Every other year of her employment they have deposited weekly match. Has anyone ever heard of this before??

livesoft
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Re: 401k Match Issues

Post by livesoft » Mon Dec 30, 2019 11:39 am

Yes, I have.
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JoeRetire
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Re: 401k Match Issues

Post by JoeRetire » Mon Dec 30, 2019 11:40 am

B73 wrote:
Mon Dec 30, 2019 11:32 am
Every other year of her employment they have deposited weekly match. Has anyone ever heard of this before??
I have never heard of an employer changing their 401k match deposit strategy like this.
Very Stable Genius

HomeStretch
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Re: 401k Match Issues

Post by HomeStretch » Mon Dec 30, 2019 11:43 am

Your spouse can call HR to ask if the match timing changed from per pay period to annual. Surprising if a change was made and not communicated to employees. Or it could be an error.

SurfCityBill
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Re: 401k Match Issues

Post by SurfCityBill » Mon Dec 30, 2019 11:45 am

Yes, companies are getting more creative in managing cash flow as well as vesting requirements. My former company had a full three year vesting program where all matching company contributions would be forfeited if you left their employment (or were laid off) in under three years. I left in 3 years, 1 month.

Ryerle
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Re: 401k Match Issues

Post by Ryerle » Mon Dec 30, 2019 12:22 pm

Work at a hospital. They deposit yearly in March. I asked the HR rep to change to every pay period and was told it was too much work. Wife works at competing hospital and they matching every pay period. :?

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Nate79
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Re: 401k Match Issues

Post by Nate79 » Mon Dec 30, 2019 12:23 pm

How did your wife find out it is now posted at the end of the year?

slyfox1357
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Re: 401k Match Issues

Post by slyfox1357 » Mon Dec 30, 2019 3:22 pm

weekly/-bi-weekly payroll matching may be the norm but some companies are switching to 1x or 2x a year. My company does their match March & October. They may have switched to this model, check into it.
Last edited by slyfox1357 on Mon Dec 30, 2019 3:32 pm, edited 2 times in total.

Triple digit golfer
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Re: 401k Match Issues

Post by Triple digit golfer » Mon Dec 30, 2019 3:30 pm

My last company only paid the match once per year, in March.

Topic Author
B73
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Location: Corning, NY

Re: 401k Match Issues

Post by B73 » Tue Jan 14, 2020 5:17 pm

Thanks for the replies everyone. I just wanted to give an update. As of today no match has been deposited and my wife got ahold of HR. They said they were under an audit and no 401k match has been paid for 2018 or 2019, but they expect them to be deposited “sometime this year”.

livesoft
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Re: 401k Match Issues

Post by livesoft » Tue Jan 14, 2020 5:19 pm

B73 wrote:
Tue Jan 14, 2020 5:17 pm
Thanks for the replies everyone. I just wanted to give an update. As of today no match has been deposited and my wife got ahold of HR. They said they were under an audit and no 401k match has been paid for 2018 or 2019, but they expect them to be deposited “sometime this year”.
This reminded me that I received a match about 2 years after leaving my employer.
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nolesrule
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Re: 401k Match Issues

Post by nolesrule » Tue Jan 14, 2020 5:25 pm

JoeRetire wrote:
Mon Dec 30, 2019 11:40 am
B73 wrote:
Mon Dec 30, 2019 11:32 am
Every other year of her employment they have deposited weekly match. Has anyone ever heard of this before??
I have never heard of an employer changing their 401k match deposit strategy like this.
My wife's MegaCorp switched from per paycheck to annual matching beginning Q2 2018.

Big Dutch
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Re: 401k Match Issues

Post by Big Dutch » Tue Jan 14, 2020 5:38 pm

I work for a small company < 50 employees. The company pays out 401k match in a lump sum Q1 of the following year. For example, our 2019 match will be paid sometime in the next couple of months.

~Big Dutch

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JoeRetire
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Re: 401k Match Issues

Post by JoeRetire » Tue Jan 14, 2020 5:50 pm

nolesrule wrote:
Tue Jan 14, 2020 5:25 pm
JoeRetire wrote:
Mon Dec 30, 2019 11:40 am
B73 wrote:
Mon Dec 30, 2019 11:32 am
Every other year of her employment they have deposited weekly match. Has anyone ever heard of this before??
I have never heard of an employer changing their 401k match deposit strategy like this.
My wife's MegaCorp switched from per paycheck to annual matching beginning Q2 2018.
I'm sure it happens. I just don't know of anyone personally where it happened.
Very Stable Genius

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whodidntante
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Re: 401k Match Issues

Post by whodidntante » Tue Jan 14, 2020 9:03 pm

SurfCityBill wrote:
Mon Dec 30, 2019 11:45 am
Yes, companies are getting more creative in managing cash flow as well as vesting requirements. My former company had a full three year vesting program where all matching company contributions would be forfeited if you left their employment (or were laid off) in under three years. I left in 3 years, 1 month.
You wasted 30 days. :twisted:

HomeStretch
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Re: 401k Match Issues

Post by HomeStretch » Wed Jan 15, 2020 12:45 am

B73 wrote:
Tue Jan 14, 2020 5:17 pm
As of today no match has been deposited and my wife got ahold of HR. They said they were under an audit and no 401k match has been paid for 2018 or 2019, but they expect them to be deposited “sometime this year”.
Not sure if this applies to your wife’s company, but several public companies I am familiar with made the annual employer match after completion of their annual financial statement audit.

Spirit Rider
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Re: 401k Match Issues

Post by Spirit Rider » Wed Jan 15, 2020 12:46 am

JoeRetire wrote:
Mon Dec 30, 2019 11:40 am
B73 wrote:
Mon Dec 30, 2019 11:32 am
Every other year of her employment they have deposited weekly match. Has anyone ever heard of this before??
I have never heard of an employer changing their 401k match deposit strategy like this.
In 2013 IBM switched from pay period matching to once/year matching. At that time 9% of companies only matched once per year. After IBM made that change many large companies have followed suit.

IBM instituted a more insidious change. If you are not employed on 12/15, you do not receive the match on 12/31. Many companies have used a variation on this. If you are not employed on 12/31, you do not receive the match often distributed in March. Lay them off before Christmas and you don't have to pay the match. The corporate grinch is alive and well.

This is allowed under the tax code and IRS rules and regulations. An employer has until their tax filing deadline including extensions to make employer contributions. For a corporation these dates are 3/15 and 9/15.

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