There are several options depending on how the match provisions are set up in your plan document.
If your plan document has a:
• Fixed match formula – You may be able to amend your plan to remove or reduce the match amount due for the 2020 plan year. Please contact your dedicated CRM to review the options specific to your current plan provisions.
• Discretionary match provision (no written formula) and an annual or unspecified computation period – You can stop depositing match contributions at any time. At plan year-end, TRA will help you determine any adjustments on the match amount deposited to ensure it has been allocated per the terms of the plan document.
• Discretionary match provision (no written formula) and a payroll-based computation period — You can amend your plan document to reflect an annual computation period and temporarily stop making the match contributions. At plan year-end, TRA will help you determine any adjustments on the match amount deposited to ensure it has been allocated per the terms of the plan document
Important Considerations:
• If your company is temporarily closed and not paying wages, no employer contributions are due, since there are no wages for employees to defer off of — and consequently, no deferrals to earn match contributions on.
• If you are considering stopping or suspending match contributions, contact your dedicated Client Relationship Manager to discuss your options in more detail.