Can a company contribute nothing to their 401k plan?

13 Answers

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  • Anonymous
    4 months ago

    Barring local laws, there is no requirement for companies to provide matches to 401k contributions by employees.

  • 4 months ago

    Sure--they don't HAVE to contribute. It's not THEIR plan it's YOURS. You are the one who makes the contributions. Just because they offer one, it doesn't mean you'll get any matching funds--though most offer those. They can limit the amount of funds they will match, or they can say that they will only match for employees who contribute X percentage or more--but they don't HAVE to match your contributions. 

  • 4 months ago

    Ask about stock options in their company as an alternative to the 401k with no contribution.

  • 4 months ago

    Yes of course.................there is no law requiring them to even have one, much less contribute to it.

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  • 4 months ago

    Many companies match up to 6% of employee contributions. Section 401(k) of the internal revenue code doesn't require any employer contributions.

  • 4 months ago

    Yes.  Most do make some matching contributions, but it's not required.

  • Judy
    Lv 7
    4 months ago

    Yss, not every company provides a match

  • 4 months ago

    Yep.  Employer contributions are not mandatory.  Given all the covid mess, a lot of companies are taking advantage of that and reducing or suspending their 401k matching.  

  • Anonymous
    4 months ago

    of course, its not mandatory. 

  • 4 months ago

    Yes.

    401k matches are optional and they can be stopped.

    >>>>According to a survey by Willis Towers Watson, almost 20% of companies with at least 1,000 employees suspended or decreased their retirement plan contributions during the 2008 recession.<<<<

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