Anonymous User wrote:Associates (paid at the market scale, or even below market down to the mid-low 100s) are HCEs, so this can't be the reason. This is why the retirement plans at most firms are separated between staff-partners and associates, though. Adding in the associates to the staff-partner might cause there to be too many HCEs participating (though of course they could get around this by automatically contributing some amount on behalf of staff--it's really to screw the associates).
Never heard of a firm doing mandatory contributions. Is it mandatory, or just opt-out? Are you at biglaw (NYC?) or a smaller firm?
Also, heard a rumor at my firm that we're going to 210 next week. We're going to skip 190 entirely. Sorry, bros.
1. I don't think all associates are necessarily HCEs because they'd also have to be in the Top-Paid Group
2. It's not really mandatory contributions in the sense of taking from top-line salary. For example, ignoring taxes and bonus, if your annual salary was $160k, you still grossed $160k for the year but the partners add in $6400 to your 401k whether you contribute or not. So, in that sense, it's neither mandatory nor opt-out. Or I guess you could think of it as having annual salary of $166,400 with mandatory $6,400 contribution.
3. NYC boutique that pays above market, plus a few other benefits (e.g. the 401k contribution).