PeopleSoft - 401k TrueUp on Employer Match for EEs who accelerate contributions & reach limit early
We have a straight forward 401(k) plan with a company match. A large percentage of our employers front load their contribution in the first few months of the year and/or during the bonus paycheck and reach the annual limit in the 1st or 2nd quarter. This results in the employee not receiving the full ER match they were entitled to under the terms of our plan.
Similarly, an employee who made no or low contributions to their 401(k) at certain points of the year but then increased their contributions might receive less in total ER matches than if their contributions were spread evenly over the year, again calling for a true-up