DCA

Depends on how her match works. Do whatever makes you get the max match

Guess what.

Fins Up! said:

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They will fail their testing if they don't true up a match.

If it is a "discretionary contribution" then they can do what they want.

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I didn't expect such a spirited conversation about the nondiscrimination testing impacts of a true up, even on Texags!

I'm having trouble constructing a scenario in my head in which a true up would help, rather than hurt, but maybe you're used to smaller plans. In larger plans it's never an issue. It just comes down to plans that don't want the extra administrative burden and expense, versus employee perception of fairness and the directive of management. Especially since it's typically the HCEs who are the ones wanting a true up because they're the ones who can afford to front load, or who are adversely impacted by contribution and compensation limits.

Stepping back from the practical reasons it's not an issue, what about the fact that a very substantial number of DC plans don't have a true up? Do you think every one of those fail testing?