401kSpecialist

To refer back to the original question, can a portion of the partners draw be allocated as their match funding (which will eventually be trued up when compensation is known)? If so, is the match calculated on the draw amount or could it be just an arbitrary prefunded amount based on expected full year match prorated over 12 months?

A client is decreasing their current auto-enrollment rate from 3% to 1% (too many employees opting out at 3%) and adding auto-escalation to the newly covered ACA employees. (Not a QACA or EACA). They want to: Bring in all currently not participating (previously opted out) employees and auto-enroll them at the 1% and escalate them by 1% each year, and All future entrants would be auto-enrolled at 1% and escalated by 1% each year, and All employees currently automatically enrolled at 3% will stay at the 3% rate and will not be automatically escalated. Are there any issues with having two different sets of covered employees: one for employees prior to the new ACA (that do not escalate and are enrolled at 3%) and one for employees after the new ACA (that are enrolled at 1% and subject to escalation)?