Guest Posted July 3, 2000 Report Share Posted July 3, 2000 A new SIMPLE 401(k) Plan is established 7/01/00 with the proper notice to employees. The employer elects the matching formula. For determining the match amount, is it comp from 7/01/00 to 12/31/00 or the entire calendar year? In other words, an employee may defer 3% from 7/1 to 12/31, which is 1 1/2% of annual pay. Is the employer match 100% of the 6 month deferral (1 1/2% of pay) or 3% of calendar year pay? The employer wants the latter result. Alternatively, could the effective date be 01/01/00 to include full-year comp? Thanks. Link to comment Share on other sites More sharing options...
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