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Out of curiousity, why would a company restrict 401k contributions in that way? As opposed to not providing a match for 1 year, or not vesting the match, etc. The only thing I can think of is that its fewer accounts on the books for employees that leave within 1 year, but that seems like a weak reason for that kind of restriction.

If there is a high turnover rate among the employee population, it can be very expensive to add accounts to a 401(k) plan where there is a 'per account' fee.

I have worked in organizations where particular jobs had in excess of 100% churn rate. So every year, you have the potential of paying twice the number of account fees as you have employees.

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