Your plan may include a true-up provision carried over from your prior provider. A true-up can allow more matching dollars to be allocated where someone has inadvertently front-loaded or back-loaded their employee contributions.
With a true-up, an employer adds money to an employee’s 401(k) at the end of the year so that the individual receives a match based on their full year salary instead of a match based on each payroll period individually. Please note this is not a service that Guideline offers, and most Guideline plans do not have a true-up provision. For conversion plans, Guideline will generally calculate the true-up amount owed to the plan in Q1 or Q2 following the plan’s first year with Guideline. Visit your Plan Document for more information on whether your conversion plan includes a true up provision.