| Topic Name: |
Company Match Description on YBR |
| Message Name: |
But wait, there's more |
| Date Posted: |
01/19/2006 |
| In Reply To: |
regardless of my feelings about the company, Safe Harbor is not sinister. Safe Harbor allows Hewitt not to do the "discrimination" testing (nothing to do with race)at the end of the year. This way, highly comped associates (over $95k which is a LOT of associates) don't have to be bound to the non-highly comped contribution. In a non-Safe Harbor plan, highly comped can only contribute 2% more than the average non-HC. So, if the NonHC average 2% contribution, HCs can only contribute 4%. This doesn't even allow them to contribute anywhere near the IRS $15,000 limit in most cases. Safe Harbor basically allows everyone to be able to save for retirement to the IRS max.
Sorry to burst any conspiracy theory bubbles. And no, I'm not in HR. |
| Message: |
Another advantage (to non-HCEs and HCEs alike) is that employer match is 100% vested. Which beats the old 3-yr vesting schedule. Good news for a lot of folks who won't be staying for 3 yrs! Too bad I was already vested...
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