Match con eligibility when 401k maxed earlier

[TPApril]

Facts:

-Immediate 401k entry for new hires, 1 yr match entry

-Based on % deferral rate election, ee can max out 401k early, but match will continue to be allocated on a payroll basis up to the 3% of pay

-New ee maxes out 401k prior to match eligibility, so no actual 401(k) is made after such date

Question:

1. Can ee receive a match somehow on a prorated 401k amount (ie 3% of pay since match eligibility)?

[mphs77]

What happens per the plan document if an ongoing participant maxes out?

Say if John Doe reached his 401(k) max in October, would he get match in November and December?

I would think it would be the same for a newly eligible.

[TPApril]

mphs77: Yes to your question, the match would continue even when there is no actual 401(k) (ongoing trueup), ok, that makes sense then. thanks.

[rcline46]

TPA April - how can there be a match when there is no deferral? You know this is actually written into the document - the match is computed on a (payroll, monthly, quarterly, annual) basis. What you are wanting is a true up match, and either the document must state a true up, or the match must be on an annual basis.

[TPApril]

Your question is essentially my question.

The BPD indicates it is an Annual True Up but the Match doesnt have to be made at any particular time. The longstanding procedure as I understand has been an ongoing trueup every pay period.