Year-end contributions

Beware the End-of-Year 401(k) Match - NYTimes.com: "Not many companies have adopted these so-called last-day rules so far. As of the end of 2011, just 7 percent of clients at the benefits consulting firm Mercer deposited their 401(k) matches annually. Aon Hewitt’s 2013 study put the number at 8 percent. The latest Plan Sponsor Council of America survey puts the figure at 17 percent.

Last-day rules tend to be a bit more popular among banks. There, however, it may not hurt employees quite as much, since employees tend not to walk out under their own power until after they’ve gotten their year-end bonus. If they hang around long enough to cash that check, their match will have already cleared. (Midyear retirees usually get their matches as well.)

IBM generated a fair bit of attention in late 2012 when it adopted a last-day rule, and a couple of United States senators tried to pressure it into reversing its move. It refused, and it was hard to make IBM the boogeyman given that its 401(k) match is extremely generous compared with most other companies. It also offers free comprehensive financial planning to employees, something more employers ought to offer."



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