Restrictions on Matched Employee Contributions or 401(k) Contributions

[Guest rocnrols2]

Company X provides a 401(k) plan to its employees in which the first y% of employee after-tax contributions and/or 401(k) contributions are matched dollar-for-dollar. Company X also permits to employees to make after-tax and/or 401(k) contributions in excess of y% but these contributions are not matched by the employer. In the withdrawal provisions the employer restricts withdrawals of matched after-tax and/or 401(k) contributions to contributions which have been in the plan for at least 24 months unless an employee has participated in the plan for at least 60 months. When a participant questioned whether this was necessary, the employer referred the participant to its TPA which stated that these restrictions were required by two Revneue Rulings issued in 1974 with respect to employer contributions geared to employee contributions. The Revenue Ruling numbers are 74-55 and 74-56. I thought that when 401(m) was enacted, these rulings were made obsolete. Has anyone heard of this or have any thoughts on this?