GM, Signs and Portents

GM suspends 401(k) match for salaried employees

DETROIT, Dec 15 (Reuters) - General Motors Corp. (GM.N: Quote, Profile, Research) is suspending contributions to its 401(k) retirement savings plan for salaried workers, a spokesman said on Thursday...

...The world's largest automaker was also dropping the requirement that up to 3 percent of worker's contributions and 100 percent of the automaker's contribution be invested in GM shares....

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This will mean loss of Safe

This will mean loss of Safe Harbor status for their 401K (if they hadn't already lost it), which will potentially suck big-time for any GM employees making just at or just over $90,000 who like to contribute the maximum to their 401Ks.

I had written up a lengthier comment about the non-discrimination tests that have to be done for non-Safe Harbor 401Ks and how the innumerate legislators or regulators who came up with it probably didn't realize that it amounts to a penalty on the *lowest* paid of "highly compensated employees," but I've simplified it to this shorter comment. If you want more detail, see http://www.peregrinepensions.com/non.html or ask me directly for a rant about what happens when you get a refund on a large percentage of your 401K contribution for a prior tax year...