HCE and Employer Match

[Guest think2much]

I am a first time HCE and have just received my first paystub for 2008. It shows my regular 401(k) contribution (limited to 10% for HCEs) and my catch-up contribution, but there is no employer matching contribution at all.

My company does not match catch-up contributions, but matches regular contributions up to 4% of pay. Can they treat HCE differently regarding employer match, i.e., no match for any HCE contribution?

[Jim Chad]

Unfortunately, yes they can treat HCE's differently. It is possible that HCE's are excluded from match.

It is also possible that someone mistakenly classified this as a catch up contribution and did not match it because your Plan document states that catch up contributions will not be matched. You may want to check with payroll departement or human resources to find out who knows the rules. And then ask that person to double ccheck this for you.

Some of this information might be in the Summary Plan Description. If you do not have one, I would suggest you ask human resources for one.

[Tom Poje]

the match is not going to show up on the pay check stub. a match is not 'additional pay' - it is a contribution.

so your deferrals are put into a plan, and assuming you get quarterly statements you will see the match at that point in the game, assuming all people (including HCEs receive the match).

sometimes matching contributions are not made until the end year, so you might not even see it until then.

[Kimberly S]

Some companies do show the match on a pay stub even though they are not required to do so. If you've previously seen them there, by all means ask HR what has changed. It could be that they are using new software that no longer allows them to report this additional information.

[Guest think2much]

I saw employer contribution on my paystub last year, and the company is using the same payroll system (ADP) this year. What changed this year is that I am a first time HCE and my contribution is limited to 10%. I want to learn a little more about rules for employer match before I follow up with Payroll regarding the missing match.

If a plan matches NHCE but does not match HCE, is it in violation of the "universal availability" rule?

[Tom Poje]

the term 'universal ability' generally only applies to the ability to make catch-up contributions, not match contributions.

yes, a plan can discrimination against HCEs (e.g. exclude HCEs from the match), though I would say it is not that common.

as Jim Chad indicated, the SPD should indicate whether or not HCEs are eligible for the match.