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Sooner
Does anyone know: I have a CBA at one location that states 401k should come out of gross earnings; however, our 401k was not set up to take contributions from overtime. I know that if the situation were reversed - if the plan said stated gross earnings and we weren't taking from overtime - the company would be able to fund the missed contributions and earnings. Can we do the same in this situation? Don't know the DOL regs.... Would it just be a self correct?
From United States, Arlington
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Soms23
Hr Manager
Paladin
Hr Consultant
Rekhadaniel
Hr Consultant
Sooner
Sr. Human Resources Mgr

soms23
16

Hey, This was a total bouncer. Can you plz for the benefit of people like me, tell what 401k is all about? Regards, Soumya Shankar
From India, Bangalore
rekhadaniel
3

It's the US Retirement Plan - ee's are allowed a certain amount of money year year to go into this retirment plan that is pre-tax dollars.
some companies match a certain % other don't
the advantage is that ee's are tax sheltered from this amount and the % on growth of the funds. - until they hit 65 - when they can draw upon them -
that is 401K in a nutshell
rekha

From United States, Saint Louis
soms23
16

Hi Rekha,
Thanks for the info. But plz let me know the following:
1. Why is called '401k'?
2. Is it implemented only in the U.S?
3. Where is that amount deposited? What happens to it just incase the employee quits or expires?
4. Is it restricted to any particular industry?
Regards,
Soumya Shankar

From India, Bangalore
rekhadaniel
3

1. Why is called '401k'?

A 401k plan is a retirement plan sponsored by employers. Employees may choose to have a portion of their salary deferred to any of the 401k investment choices selected by the employer. The employer may also contribute to the employee’sa 401k by matching a portion of the investment (for example, $.50 for every $1.00 the employee invests). The investments to which money is deferred may include stocks, bonds, money market funds, and company stocks. Monies deferred into the 401k are allowed to grow tax-free, and these monies are subtracted from the employee’sa taxable income. The maximum amount

2. Is it implemented only in the U.S? same concept is there in Canada and Europe - RRSP Canada

3. Where is that amount deposited? What happens to it just incase the employee quits or expires? a 401K plan in administered through various vendors - financial groups - such as vanguard, ing, sunlife, etc... if an ee is terminated then she has a X amount of days I believe its 60 days that they have to roll it over into an individual plan.

4. Is it restricted to any particular industry? nope most industries offer this to my knowledge to ee's it is a benefit if company matches a %

From United States, Saint Louis
Paladin
9

Unless the 401(k) provision is a recent addition to the CBA, my question is: How was it handled in the past?
If it is a new provision, contact the Company Negotiator for clarification on how it should be administered.
Without further informatin, I have to agree with rekadaniel - Only straight time earnings are eligible for inclusion in a 401(k).

From United States,
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