A business that operates both its business and its 401k plan on a calendar year basis, 2018 matching contributions must be made by April 15, 2019.
I guess end of January isn't too bad. Hope I didn't give them any bad ideas...........
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If this action had any benefit for the employee, they wouldn't have done it. They only take action when it's for the good of executives pay. At least they didn't schedule all annual layoffs before the December 14th date.
To the Honeywell management that implemented the lump-sum company match, recent market volatility is a good example of why dollar-cost-averaging the company match every paycheck is so important. I have To wonder if you’re meeting your fiduciary responsibly to act in the employee’s best interest with regard to the 401k plan? Please reconsider your decision.
Your estimation of the IRS requirement for the contribution is incorrect. In order for the contribution to be deductible by the employer it must be made by the filing date (including extentions) of the company's tax return. So for a calendar year company like HON, the 2018 contribution must be made by March 15, 2019 (if HON does not extend its tax filing due date) or by September 15, 2019 if it does extend the due date for its tax filing.
That being said, HON has amended the plan to contribute the match by the end of January for employees who remained employed as of December 14th, so I do not believe that the contributions can be delayed beyond the end of January 2019.