A second match formula

[JKW]

I have a plan that has a current set match. They would like to add an additional disc match with a vesting schedule. I have never had this come up. Is this possible?

[Lou S.]

Yes it is possible.

[austin3515]

You're saying the existing match is 100% vested and you want to add the new match with a vesting schedule (let's assume it is an annual match with allocation conditions)? Wow, for me that seems to be over the line. What happens if one day get rid of the 100% vested pay-period match, and then later on you amend your Vesting Scheduled Match to each pay-period?

I wouldn't do it personally!

[Kevin C]

Is this current 100% vested set match perhaps a Safe Harbor Match?

If not, most if not all pre-approved documents allow a discretionary match in addition to a fixed match. While you can change the vesting schedule for a contribution source if you follow the rules, I agree with Austin that two different vesting schedules for different pieces of the same source seems over the line. It certainly isn't an option in our VS documents, so the answer for our clients would be no.

[JKW]

Thanks.