No. of Recommendations: 0
Just a couple of fine points:
I never know what my employer's match will be until after the year is over
If the employer's contribution to your retirement plan is discretionary...that is, the employer may make a contribution, a partial contribution or no contribution for the year, it then really isn't a match....its the profit sharing part of a Profit Sharing-401(k) tandem plan. A 401(k) match must be announced prior to the start of the plan year and cannot be changed except under certain extenuating cases (as happened to many employers in 2008)

However, non-highly compensated employees may find an additional contribution to their 401(k) plan at the end of the year, due to any of several possible reasons, such as excess salary contributions by highly compensated employees, the past year's plan is found to be 'top heavy' or reallocation of forfeitures (employer contributions to departed employees who were not fully bested in the employer's past contributions). These amounts are usually modest.

As to your friends at work, another way the employer can correct for over contribution by highly compensated employees other than adding more to non-highly compensated employees, is to return the excess contribution to these highly compensated employees.

This is not an issue with non-highly compensated employees salary deferrals, which you would be based on the figures you've shown.

Many workers today are making contributions to taxable accounts, even though it is after tax, as they can fully control their investments and account expenses. And I suspect that after all qualified plans start reporting their expenses, direct and indirect, to employees after July of 2011, there will be more employees considering making after tax contributions to taxable accounts.

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