I started at my job in Colorado at a small business in November of last year. I am the owner's EA, and I do a little of everything. My past positions I have had some minor HR experience, mostly payroll/time tracking/record keeping/PEO admin. I have extremely limited knowledge on retirement accounts on either employee or employer side, and my boss knows this.
When my boss set up a Roth IRA (Vestwell Colorado SecureSavings) at the end of 2024, he told current employees and employees he hired after, that we were matching 3% of all employee contributions to their IRA. Maybe he thought it was happening automatically, but it never did because it was the kind of IRA that didn't allow employer contributions. I don't think he knew any of this until I had an employee ask me why their contributions weren't being matched, so I looked into it.
We recently switched over to a Human Interest 401k Safe Harbor plan, and my boss asked me if we can make up for all the missed IRA employer contributions in late 2024/2025/early 2026 by adding them to employee plans off-cycle. That isn't possible, so I am trying to figure out other options we have.
We cannot add off-cycle contributions.
We cannot edit employee matching percentages (his idea was to change the percentages until the funds were equal to our missing match).
Our account manager at HI said an option is to use a "Profit Sharing" feature of our plan, but would not be able to do so until early 2027.
He doesn't want to just cut checks, but I'm not sure that's the way to do it anyway. Like I said, I have very little knowledge of retirement accounts and am feeling 100% lost, hence my username. Any ideas on this?
