joeNOSPAM@[EMAIL PROTECTED]
wrote:
> Thanks, I do understand the retention motivation etc, but I am asking
> whether a company match is in fact simple hard cash debited
> immediately
> from the cor****ate coffers, or whether there is any tax preference,
> interest-bearing
> deferment account, or other money-denominated compensation available
> to
> the company that lowers the actual cost to the company.
> Joe Weinstein
As most have stated, it's a benefit. It's treated as pay to the employee
as far as the accountants are concerned. (Of course, for companies that
'vest' the matching over 5 years or so, the accounting may be slightly
different.)
Part of the benefit is this - If there were no matching, and
participation were low among the common folk, the plan would be deemed
'top heavy' and the higher ups would have limits lower than the current
15.5/20.5K deposit limits. The match attracts a higher participation
level and reduces that risk of imbalance.
Joe
www.blog.joetaxpayer.com
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