Once A Year Employer 401K Contribution | TigerDroppings.com

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LETSGEAUX2
Member since Oct 2012
339 posts

Once A Year Employer 401K Contribution


Can someone explain this concept to me? My wife started her 401k last year and this week, she got her employer match for the entire year. Does that mean that only her contribution is providing a return? Basically every year, the money she is investing in the market is 1/2. Am I understanding this right?






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tigeraddict
LSU Fan
Baton Rouge
Member since Mar 2007
4701 posts

re: Once A Year Employer 401K Contribution


My company does their match quarterly. Even though i contribute weekly, their payment goes into my account every 3 months.

We also have union field workers, and their Pension payments are made every 3 months as well







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GenesChin
Ole Miss Fan
The Promise Land
Member since Feb 2012
10656 posts

re: Once A Year Employer 401K Contribution


Sounds like she gets her money a year late





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Maderan
LSU Fan
Member since Feb 2005
471 posts

re: Once A Year Employer 401K Contribution


Any employer contributions must be made before the company file their taxes, including extensions.

So for 2012 matching/profit sharing/safe harbor contributions a company can go up to September 15th of 2013 before making them.

Companies can contribute earlier as well (every payroll, monthly, quarterly, etc) but it is up to them.






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cjared036
Alabama Fan
Houston, tx
Member since Dec 2009
5919 posts

re: Once A Year Employer 401K Contribution


I get quarterly with a profit sharing.





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Hand
Army Fan
far side of the moon
Member since Dec 2007
1998 posts

re: Once A Year Employer 401K Contribution


LINK







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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
29702 posts

re: Once A Year Employer 401K Contribution


quote:

Hand


Good link, explains much about this practice which is legal but not favorable to employees for the reasons stated.






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Oenophile Brah
USA Fan
The Edge of Sanity
Member since Jan 2013
4718 posts

re: Once A Year Employer 401K Contribution


quote:

LINK

I read that piece when it came out. A friend of mine at IBM is pissed. If she works for 11 months and leaves, she receives no co. contribution for the year. It's terrible for the employee. Luckily, I haven't seen this practice spreading much. Yet.






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