Ryan L

Thank you Patricia and BG5150! We will definitely have clear communications and examples of the match as we roll out the program. Our match will be calculated and deposited (up to a fixed % max) on a per pay cycle basis, so the year end true up will be to allow front-loading if they participant desires, without losing match. Today we have a good percentage of "front-loaders" and I'm curious to find out if people will choose to smooth out their contributions throughout the year to receive more of the match during the year vs true-up.

True! I was thinking some people may choose to spread their contributions out over the year vs maxing out early, in order to get more of the match sooner. But I may be over-thinking this. Thanks for the input!

Thanks Mr Bagwell and Belgarath! Yes, it seems the true-up could vary considerably with plan design and other factors. We have a relatively large bonus that pays early in the year as well, and many employees today max out 401k deductions with this bonus. It will be interesting to see if their behavior changes next year when the match is in place.

Mr Bagwell: To clarify my question: For plans that do offer a year-end true up, what percentage of the overall annual company match happens at the year-end true up? Thanks for asking!

Hello, We are implementing a 401k match with year end true up next year. For those of you with this in place, what percentage of overall match happens during the year vs. the year end true-up? I realize this will vary from company to company but looking for some general numbers. Thanks, Ryan