So the bank has a policy that if you max out your contributions early in the year, and thus can’t contribute later in the year and get the accompanying matching BNYM contribution, they will do a “catch up” payment on your behalf. My question is, do they make this payment if you are no longer with the company and if so, when?
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Not shocking that there are people that weren't aware that Index Funds are an option within the 401k. These are the same people that fail to live within their means because of their own poor choices, but blame the company (which does suck) for their poor personal finances.
As for the fee issue regarding the Index Funds, BNY Mellon pays the investment management fees that are incurred. There are administrative fees, but they are nothing compared to the fees of Actively Managed Funds. The fee for the Large Cap Index fund is just .01% compared to .20% & .22% for the two actively managed Large Cap funds.
@1fbq+1aLn1nEJ, make sure you talk to someone if you don't know the implications of rolling over to an IRA. Some of the disadvantages can be substantial for some people.
@1fbq+1aLn1nEJ, correct. And there ARE index funds available in our 401(k) with very reasonable fees. But the original poster asked about maxing out their contributions before the end of the year. For some reason the bank quits matching during the year when that happens then they do a true-up the end of March.
Haha ok. That has nothing to do with the original questions and answers nothing that’s been asked. Would you like to step off your soap box now?
So much erroneous information here, so much….. Don’t make a simple 401K hard. Simply put at least 7% per pay but really all that you can afford to put in. If you want to think hard put it towards the fund selection.
By he way, all Index funds and ETFs actually do have fees too. Read the prospectus.
Yikes. The 401k choices are limited to the mutual funds offered, not index funds. No wonder you work at BNYM. Yikes folks
Yikes. People actually put their 401k contributions in mutual funds with fees?
Index funds folks. Wise up.
Potentially true. I meant more that any mutual fund has a much higher fee than a low cost index ETF I could choose once I roll over to my IRA. Wasnt a shot at BNYM 401(k) which I would agree is pretty competitive.
I find our 401(k) fees and fund fees to be very reasonable.
Thanks! So I take that to mean the company match “true up” for 2021 for recently laid off folks will occur at the end of March, 2022? Annoying to have to leave the money in the 401(k) plan with its high fee mutual funds for almost another full year.
It's called a "true-up" contribution and they OWE you that no matter when your employment ends.
Company matching contributions
are made each pay period on a
pre-tax basis and invested in
the same manner as your own
contributions.
BNY Mellon will “true-up” your
match after the end of the Plan
year to ensure that you receive
the maximum match under the
Plan’s formula, based on the total
amount you save during the year.
If applicable, your true-up will
be deposited by March 31 of the
following year.
They stopped the 2% annual contribution in 2021. This is the last year for the payment.
Right. You get the 2% “safe harbor” at the end of March if you were an employee on 12/31 of the previous year. But I don’t know about the catch-up payment. Seems unlikely you’ll see it.
The 2% match is a different animal. It's also paid the end of March but you need to be an employee 12/31
They pay it the end of March. They must give you the contribution match that they commit to.
Benefits like that generally only apply to employees so I wouldn't hold my breath. Simple enough to reach out to someone in HR/benefits and ask though.