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Do 401(k)s have clawbacks? I had never heard of that before and googling around all I found was articles about the complexity of clawing back things like sign o
by lovich 3y ago
Do 401(k)s have clawbacks? I had never heard of that before and googling around all I found was articles about the complexity of clawing back things like sign on bonuses if the employee had immediate access to the 401(k) plan and had deferred part of the sign on. It also wasn’t “impossible” to get the sign on back, just complex.
I also have never seen a company allowing day 1 401(k) access but maybe I’ve always worked at a shittier tier of companies
- Racing0461 3y ago> 401(k) clawbacks, also known as a corrective distribution, occur when a company's 401(k) plan fails to meet certain regulatory requirements, such as nondiscrimination testing. These tests are designed to ensure that a 401(k) plan does not disproportionately benefit highly compensated employees (HCEs) over non-highly compensated employees (NHCEs). Hense my use of the word "equity"
- lovich 3y agoIf the E in those acronyms meant “equity” then my bad for not knowing. I am not working in such hallowed halls that equity is handed out without having to go through three or four layers of making sure your betters get paid out before you get the chance to see a benefit. Pretend you’re explaining like I’m five when it comes to the word “equity” mostly because I don’t see where you used it in your post that be quoted as “equity”