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John
John, Attorney
Category: Business Law
Satisfied Customers: 4530
Experience:  Licensed and practicing attorney helping businesses achieve their legal and practical goals.
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I am part of a 401-k plan headed by a physician. He states

Customer Question

I am part of a 401-k plan headed by a physician. He states he makes his contributions to out 401-k at the end of the fiscal year. We make our contributions monthly. He says he matches what we put in at the end of the year, but that reduces the compound
interest rate. Is this legal. We are allowed to contribute up to 4% of our annual salary and his agreement in our contract is to match that amount
Submitted: 1 year ago.
Category: Business Law
Expert:  John replied 1 year ago.

Hi, thanks for submitting your question today. My name is***** have over 13 years of legal and consulting experience in this area. I’m happy to assist you with your question today.

It is legal to contribute yearly to this type of retirement plan. Simply put there is no law against it. The law only requires that the employer follow its plan, and it does have maximum time limits in which the employee must become fully vested in employer contributions. But there is no requirement that employers even provide contributions to a 401k style pension, much less that they be paid monthly or weekly.

I believe this answers your question. However, if you need clarification or have follow-up questions regarding this matter, I will be happy to continue our conversation – simply reply to this answer. If you are otherwise satisfied with my response, please leave a positive rating as it is the only way I am able to get credit for my answers. Thank you, ***** ***** wish you all the best with this matter.

Expert:  John replied 1 year ago.

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Expert:  John replied 1 year ago.

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