What many employers have not focused on doing, however, is ensuring that employee contributions (elective deferrals and loan repayments) to their 401(k) plans continue to be deposited into the plans in a timely manner. Whether freezing safe harbor matching or nonelective contributions or deciding against making discretionary matching and/or profit-sharing contributions, the goal has been the same: reduce their employee benefits costs. Many employers facing economic challenges because of COVID-19 have considered several possibilities for reducing their contributions to employees' 401(k) plans.
