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FIS Document users - flexible discretionary vs. rigid discretionary


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Just curious as to what other folks have decided. I've decided that for most purposes, the "rigid" discretionary match is useless (or perhaps I should say overly restrictive), and we're using the flexible discretionary match for pretty much everything except where the client wants a fixed match in the document. You just have so many more options.

I should hasten to add that we do NOT use the PPD document, so if you are using PPD, then your opinion re the "rigid' match might be very different.

Curious as to other thoughts - pros, cons, which are you using? Only downside from my perspective on the flexible match is the notice requirement, and the notice is VERY easy.

Edit - as I read the original post, I think I worded something poorly - when I said "useless" I didn't really mean that. I meant "useless" for most of our clients, as they usually want more flexibility than is permissible using the "rigid" discretionary match. But the rest of my question still stands - interested to see what others think. Thanks.

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If their match pattern is already known, we do Rigid (i.e., pay-period math, 50% of 6%).  Sole downside is giving up optional true-up, but hey if the "optional true-up" was necessary we can just choose annual calc period instead.  The benefit here is no notice.  I hate notices!

If they never use the match, we use the Flexible so we don't rope ourselves in.  I also never want to include a cap on deferrals in the SPD that gets handed out because someone might get the wrong idea if it will never be used.

Anyway, that's where we've settled!

Austin Powers, CPA, QPA, ERPA

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