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I wish that my company would offer a 401(k) plan, but it don't.

It does offer company stock as a retirement plan. The way the system works is that at the end of each fiscal year, the company contributes a percentage of my annual salary to the plan. The precentage rate typically varies between 5 and 15 depending on how well the company does each year. This plan does not allow the employees to contribute any money.

When I asked the president of the company why, he said that at the time they set up the retirement plan, it was against the law to offer both the company stock plan and a 401(k) plan.

Does anyone if this was ever true or if it is still true?

If it is possible to have both plans, how would that work with a 401(k) plan if an employee wanted to contribute the maximum percentage allowable, since the percentage contributed to the stock plan varies each year?

I would really like to have a 401(k) plan, even if it was completely employee based without any employer contributions.

thanks,

Chris
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