Comments on: What Is 401K True Up Matching http://www.myretirementblog.com/what-is-401k-true-up-matching.html Retire happy, healthy and wise. Thu, 20 Nov 2008 15:19:59 +0000 http://wordpress.org/?v=2.6.3 By: Albert Ng http://www.myretirementblog.com/what-is-401k-true-up-matching.html#comment-62703 Albert Ng Sun, 24 Feb 2008 05:31:02 +0000 http://www.myretirementblog.com/what-is-401k-true-up-matching.html#comment-62703 Let's say the Plan has immediate eligibility for deferral but with one year service requirement for match eligiblity. Match formula - dollar for dollar match up to 5% of pay Participant's eligible pay for 2008 - $50,000 Participant hired on 7/1/07, match entry date - 7/1/08 and started deferring 5% upon hire and for the whole year in 2008. Would his deferrals made prior to match eligiblity date count for true-up match contributions or not? That is, would he be getting $2,500 match or $1,250 match for 2008? Let’s say the Plan has immediate eligibility for deferral but with one year service requirement for match eligiblity.

Match formula - dollar for dollar match up to 5% of pay
Participant’s eligible pay for 2008 - $50,000

Participant hired on 7/1/07, match entry date - 7/1/08 and started deferring 5% upon hire and for the whole year in 2008.

Would his deferrals made prior to match eligiblity date count for true-up match contributions or not? That is, would he be getting $2,500 match or $1,250 match for 2008?

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