Elmo
Jan 31 2002, 09:00 PM
Can an employer limit the compensation subject to a match; for example, match dollar for dollar up to 3% and $100,000 of compensation
Mike Preston
Jan 31 2002, 11:00 PM
Yes. However, if the match was instituted in order to satisfy a particular provison of the Internal Revenue Code (such as a safe harbor match under 401(k)(12)(B)), then that provision would no longer be satisfied and the plan would lose whatever advantage it enjoyed by satisfying the provision.