I worked for a nonprofit 10 years ago as a seasonal laborer for 9 months full time. It was my first job out of college and like I mentioned wasnt a forever gig. The seasonals were the lowest people on the totem pole for sure although we out numbered the full time staff.
I got a letter today that identified me as an employee that was erroneously not enrolled in or informed about the company 403b.
Non profits are notorious for not matching. Ive never ever worked for an employer that matched other than the military. Thats how common it is. Considering I made like 9 bucks an hour for only 9 months I was certainly not expecting a 403b benefit and even if it were an option I wouldn't have done it as I needed money in hand at that time. So no red flags for me at the time.
I guess they got in big trouble or something because they tracked me down ten years later to tell me this. (universal availability rule??) I dont even know how they found my address. Ive moved states three times since then never mind changing apartments every 2 years...
Anyway the letter has a bunch of financial jarjon I dont understand.
"Company has established a plan account in your name and made a contribution on your behalf...amount pursuant to IRS guidance...includes an allocation representing the matching contribution that would have been made...and investment earnings through the date the contribution was made"
I have to call the number provided and I will after the holiday but considering this company was shady before I want to educate myself first.
Do I understand correctly? They had a matching retirement plan that they just didn't tell thier least valued employees about for what was probably years? They are a state government affiliated nonprofit (think school district). That is pretty bad for them if true.
So they are giving me a retirement account with a chunk of money that they would assumed I would have put in, then whatever the match would be, and then interest from when I was hired to when they set up the plan?
I understand the presumed match and interest but I seems strange to give me money that I wouldn't have gotten in my paycheck if I was enrolled. I did get that money so its like getting paid twice. Plus possible tax implications...
Is this right? Am I coming out whole or what?
Submitted December 22, 2023 at 09:47PM by VamanosGatos https://ift.tt/2CHsmpL
