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URL:  http://boards.fool.com/gtgt-sorry-but-unless-that-firm-is-willing-to-14908862.aspx

Subject:  Re: question about 401k Date:  5/5/2001  2:00 AM
Author:  Schauher Number:  29483 of 76907

>> Sorry, but unless that firm is willing to and does modify its plan document to eliminate the waiting period, then he will have to wait until he is eligible to participate in that plan. The plan document rules that issue. <<

I know these types of plan documents exist (having been at such an employer myself once), but what is the advantage employers gain by doing this? I understand if they don't want to contribute matching funds, but why prevent people from saving their own money for the first year (or 22 months)?

(Sorry...it just seems outrageous to effectively erase a full year+ of someone's potential tax-deferred savings for no apparent reason. It's not even a vesting issue or implied penalty for quick employee turnover at a given company, since its effect is applied equally to all employees of that company, even the "loyal" ones.)

Is there any conceivable benefit to the employer by preventing 401k savings through such plan documents, or is it just mean-spirited?

(Thanks in advance! Sorry, I'm a little torqued)
--Rob
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