If they follow the rules, the amount that high valued employees can contribute annually is limited based on overall average participation. That is why many companies are automatically opting employees into 401k's unless those people specifically opt out, and why actual annual contribution limits may vary by company possibly somewhat less than IRS maximum. So what they are doing does not sound proper. Some links to review:
http://www.irs.gov/Retirement-Plans/Plan...
See "(More)" link under 5) on http://www.irs.gov/pub/irs-tege/401k_mis... about "The plan failed the 401(k) ADP and ACP nondiscrimination tests".
Or in general look through http://www.irs.gov/Retirement-Plans/401%...
Seem like they are telling you guys who are important within their companies so I'll find another position. I do not know your educational level but maybe you need to go back to school and reinvent yourself Lay your foundation
Luke 6:48
New International Version
They are like a man building a house, who dug down deep and laid the foundation on rock. When a flood came, the torrent struck that house but could not shake it, because it was well built
It's legal to offer benefits to select classes of employees.
If the class is assistant managers and above but you are some kind of manager class below that (let's say department manager), that would be legal.
yes that is correct
