We are dealing with exactly this issue. We are needing the pre-tax group to account for the annual employer match limit similar to the annual employee contribution limit. Additionally, there should be a way to limit either by the comp limit or the annual employer match $ limit or both. In our situation, we limit by the annual match limit and not the compensation limit because highly compensated employees can exceed the limit early in the year. And not all plans do a true-up. I see a solution for a third liability but not tied to the contribution, not good because now you have to monitor as to when the EE contribution limit is reached. Otherwise, you are remitting match funds without contribution funds which is a true-up. Not acceptable.
Mary Martin
| Company | Gribbins Insulation Company |
| I need it... | Yesterday...Come on already |
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