austin3515 Posted Thursday at 09:45 PM Posted Thursday at 09:45 PM As we all know the IRS got rid of the "Flexible" match where you can just say the match is discretionary and come up with any formula operationally. The FT document has an option for a discretionary match (8a) where the options are "as a uniform percentage of Matched Employee Contributions" (which is of course the normal one) or "as a flat dollar amount for each Participant, which of course we don't really see. Here is my issue. I cannot find anywhere that, with respect to the "uniform percentage of Matched Employee Contributions", I am able to cap the Matched Employee Contributions at X%. So everyone has a match expressed as X% of the first Y% contributed (e.g., 50% of the first 6%). I cannot find anywhere in this document that I can include the Y% / 6% cap in my examples. Has anyone noticed this? People always say, "you can get to the same outcome if you use the maximum match section and cap the match at 3%" - that only works if you never change the match so it's not a great solution. To be honest, this was a real issue for me in the FT 401k plan as well, Cycle 3. I am very curious to know if they finaly figured this out for Cycle 4. As a sanity check I am just really hopeful other people have seen this too? Or maybe I'm missing something? Austin Powers, CPA, QPA, ERPA
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now