401(k) match at end of year can undermine benefit
San Francisco Chronicle - about 3 years
AOL has reversed its unpopular plan to match employee 401(k) contributions at the end of the year instead of with every paycheck, but other companies have the same policy.
Charles Schwab - one of the top 401(k) plan administrators - Morgan Stanley, JPMorgan Chase and Deutsche Bank all have this policy, according to company representatives or 401(k) audit reports.
Citigroup matches once a year, although employees who leave midyear get a prorated match after the end of the year, when it is paid out, a spokesman says.
When IBM said in 2012 that it was switching to a once-a-year payout, "it got a lot of press because IBM is a bellwether and is known for having very robust benefits," says Mike Alfred, co-founder of BrightScope, which tracks 401(k) plans.
AOL reverses courseWhen AOL tried to switch to a lump-sum payout, it drew howls of protest, which grew louder after its chief executive, Tim Armstrong, said during an internal call that the company needed to save money partly because of
San Francisco Chronicle article