401(k) loan

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. 

"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.

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!"

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.