401(k) loan

[Bruce1]

I assume that when an employee makes repayments on their 401k loan, the employer doesn't match those repayments because it's not a contribution. I haven't seen anywhere that an employer couldn't match those repayments, but my gut feeling tells me an employer doesn't and shouldn't match 401(k) loan repayments. 

[C. B. Zeller]

"Matching contribution" is defined in IRC 401(m)(4)(A)

Quote

The term "matching contribution" means—

(i) any employer contribution made to a defined contribution plan on behalf of an employee on account of an employee contribution made by such employee,

(ii) any employer contribution made to a defined contribution plan on behalf of an employee on account of an employee's elective deferral, and

(iii) subject to the requirements of paragraph (14), any employer contribution made to a defined contribution plan on behalf of an employee on account of a qualified student loan payment.

Since a loan payment is not an employee (i.e. voluntary after-tax) contribution, nor an elective deferral, nor a qualified student loan payment, an employer contribution made on behalf of a plan loan payment could not be a matching contribution.

[Bri]

CBZ nails it.

Plus hey, if an employer "matches" an employee's loan payment, that's just called, making extra loan payments.....on occasion even also described as "being a nice boss!"

[Peter Gulia]

Consider also that an employer’s payment on a participant’s obligation might be the employee’s compensation for one or more tax purposes, and within the meaning of one or more of the retirement plan’s defined terms for compensation.