Two questions:
I have/had two employees, (employee A) one that has been with me for four years and has just quit in June and another one that will have been with me for 3 years (employee B) in August.
1. I have only just been made aware of the 401k rules, and it seems as if I should have made a plan available to employee A. What do I do now he has quit. Am I liable for any past payments?
2. I have spoken to employee B, and he says he would rather have the money in his pocket than in a 401k, in other words opting out. I have told him that I will give him the amount of what his contribution would be as a pay raise but not my matchable amount, unless he agrees to the 401k rules, and signs up. Is this allowed? Does he have to sign up?
Thanks,
RP
