Topic Archive: True-up Contributions

What Common Compliance Issues Should We Be Watching For?

DWC | 03/19/19

Facts

Our company sponsors a 401(k) plan, and we want to make sure we do everything correctly.  We have a great staff and have put processes in place to help ensure we operate the plan in a compliant manner.  With all the moving parts, however, there is still a concern that we might miss something.

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What Is a True-Up Matching Contribution?

DWC | 09/18/18

Facts

Our 401(k) plan provides for a matching contribution of 50% of the first 6% deferred by each participant (for a maximum match of 3% of pay per year).  We deposit the matching contributions to the plan each pay period at the same time we deposit employee deferrals.  After year-end for the last couple of years, our TPA has informed us that we have to make “true-up” matching contributions, sometimes for employees who are no longer with us.

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