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Financial Planning / Foolish 401(k)s


Subject:  Re: Fast Question Date:  12/6/2007  5:43 PM
Author:  Parkway Number:  22708 of 26154

Obviously, they will not be taking any 401(k) money from our next check - the last of the year, but will we still get the 4% match since our contribution rate is still set above that amount?

I suspsct this is plan-specific, but I know my employer does continue the match (I max out early so I can be sure to max out even if I leave the company early.)

I checked, and the details are in our summary plan description (SPD), which is available on our intranet. Do you or your husband have access to his SPD?

Here's the excerpt from mine:

Some employees will reach the IRS maximum contribution limit...before the end of the calendar year. These employees will continue to receive a match as they are considered active participants in the Plan. This will be done by assuming that their Salary Deferral Contributions continue until the end of the year (or until they would otherwise stop) at the percentage rate they had elected, until the maximum match amount under the terms of the Plan has been reached. An employee who voluntarily chooses to stop his/her Salary Deferral Contributions for some period of time during the year prior to reaching the contribution limit will not receive the Company match during the period of time they are not contributing.

- Parkway
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