Originally Posted by
followingdreams
You are right AND wrong.....First, you are wrong, its a retention bonus that the employee has the CHOICE of adding to the 401k or take as cash payment. You are right though, he reconsidered it and instead of being 6% of your base salary, it is now a FIXED $18k....Way better....
Fixed $18k unless 6% of your salary would eclipse that mark, then it still accrues at a higher rate. Still not a great retention tool, but I’ll take the extra cash.