Questionable decision making resulting in financial insecurity has led the company to unveil very material changes to the 401K offering, and to notify employees that any bonus pool for everyone’s hard work last year will be lean, and that they will not be offering merit increases at least in 2019.
- Beginning in 2019, 401Ks will no longer be funded per paycheck, allowing your savings to accrue sooner.
- Instead, the now *UP TO* 4% match, if paid out at all, will only be funded annually in Q1 of the following year, depending on if the company determines it is financially possible.
- The match will now only be calculated against a portion of your earnings - 9 months, not 12 -and the decision will not be made until year-end regarding what, if any, match the company will fund. (So even if they do the “full” match, it really isn’t 4% against what you earned during the plan year because they only consider 3/4 of the year.)
- Bonuses and commissions will no longer be eligible for 401K matching.
- Beginning with the 2020 plan year, employees must be employed on 12/31 of the plan year in order to be eligible to receive the matching funds on their earnings from the plan year. (So if they terminate your employment or you leave voluntarily by 12/30 of that plan year they can get out of making any match to your 401K. IF they decided to fund the match at all, which seems murky at best.)
