I’ve been having a tough time getting a straight answer on what my company’s 401k match is. Can someone help be decipher this line I found deep in the employee handbook?
Basically the title. I earn 34k a year as a admin assistant in a surgeons office. Ive been here for almost two years and started contributing 5% of my income a few months ago to the 401k. Whenever I check my 401k its worth slightly less than Ive contributed. (Given about $500, worth about $460). I also have a personal Roth Ira with $1000 in it and Im wondering if my money is better spent there.
I found this paragraph deep in the employee handbook:
The Company may, in its sole discretion, make a Matching Contribution on your behalf if you make a “Matched Employee Contribution”
during the Plan Year. A “Matched Employee Contribution” is any 401(k) Contribution or Catch-up Contribution that you may make.
If you make a “Matched Employee Contribution” the Company may contribute to your Matching Contribution Account in an amount and
allocation formula as determined by the Company in its sole discretion.
The Internal Revenue Code may also further restrict Matching Contributions for highly compensated employees.