Legal Question in Employment Law in Virginia

401(k) Matching Contribution
At the start of 2008 my employer distributed a Safe Harbor Notice ''for plan years beginning on January 1, 2008.'' This document described the matching contribution as 100% of the first 3% contributed and 50% of the next 2% contributed. I made my deferral decisions based on this information. In November of 2008 my employer distributed a new Safe Harbor Notification ''for plan years beginning on January 1, 2009.'' This new notice made the company's match discretionary. When the 2008 401(k)contribution was made (in May 2009) the amount did not match the provisions stated for 2008 Safe Harbor Notice. The 2009 ''discretionary'' element was applied against the 2008 contribution. I can find no paperwork stating that the Safe Harbor change was immediate -- only that is applied to the 2009 plan year. I made good faith contributions through 2008 with the expectation that my employer would provide the match detailed in the 2008 Safe Harbor Notice. I would have made very different financial decisions if I had known there would be no match to my contribution. My employer is very savy. I suspect he is just hoping no one will challenge him on the issue, but is it legal for him to change the matching contribution 11 months into the plan year?

Asked on 6/24/09, 10:37 pm

Michael Hendrickson Law Office Michael E. Hendrickson

0 users found helpful

0 attorneys agreed

Re: 401(k) Matching Contribution

Probably, but without reviewing the pertinent documents and any applicable statutory authority associated with your particular 401(k)

arrangement with your employer, I couldn't say for certain.

Answered on 6/25/09, 11:01 pm

Keywords

Match Any Match All

Country

State

Area of Law