DCA

Depends on how her match works. Do whatever makes you get the max match

Guess what.

Fins Up! said:

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They will fail their testing if they don't true up a match.

If it is a "discretionary contribution" then they can do what they want.

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I didn't expect such a spirited conversation about the nondiscrimination testing impacts of a true up, even on Texags!

I'm having trouble constructing a scenario in my head in which a true up would help, rather than hurt, but maybe you're used to smaller plans. In larger plans it's never an issue. It just comes down to plans that don't want the extra administrative burden and expense, versus employee perception of fairness and the directive of management. Especially since it's typically the HCEs who are the ones wanting a true up because they're the ones who can afford to front load, or who are adversely impacted by contribution and compensation limits.

Stepping back from the practical reasons it's not an issue, what about the fact that a very substantial number of DC plans don't have a true up? Do you think every one of those fail testing?

permabull said:

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$30,000 Millionaire said:

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AggieT said:

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Care to elaborate?

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I expect market to pull back 1,000 points

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Care to elaborate on why?

I think animal spirits and a president who watching the stock market daily will prop things up for awhile longer.

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Incorrect.

$30,000 Millionaire said:

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permabull said:

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$30,000 Millionaire said:

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AggieT said:

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Care to elaborate?

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I expect market to pull back 1,000 points

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Care to elaborate on why?

I think animal spirits and a president who watching the stock market daily will prop things up for awhile longer.

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Incorrect.

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That was deep

jamey said:

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$30,000 Millionaire said:

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permabull said:

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$30,000 Millionaire said:

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AggieT said:

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Care to elaborate?

---

I expect market to pull back 1,000 points

---

Care to elaborate on why?

I think animal spirits and a president who watching the stock market daily will prop things up for awhile longer.

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Incorrect.

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That was deep

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There's your 1,000 points.

$30,000 Millionaire said:

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jamey said:

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$30,000 Millionaire said:

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permabull said:

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$30,000 Millionaire said:

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AggieT said:

---

Care to elaborate?

---

I expect market to pull back 1,000 points

---

Care to elaborate on why?

I think animal spirits and a president who watching the stock market daily will prop things up for awhile longer.

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Incorrect.

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That was deep

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There's your 1,000 points.

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The plan provision you're looking for is the match computation period, also know as the match determination period.

If the computation period is per payroll, there is no true up. If the computation period is annual, the match can still be remitted each payroll, there is just a true up at year end to calculate the match considering deferrals as a % of plan compensation.

In non-safe harbor plans, some documents also allow for a discretionary true-up.