Aleritas Capital Corporation (fka ARTA)

[Jester_Vandalay]

It's a typical salary deferred contributions (401k) with a 2 percent COMPANY match on the first 4 percent of EMPLOYEE contribution. The COMPANY match is not fully vested until after five years of service, the first year it's 20%, the second it's 40%, the third it's 60%, etc.

Almost all of these salary deferred 401K have a BK clause that makes everybody fully vested, if a BK event takes place. For myself it's only $15K with an extra $1K on the unearned Company vesting match amount.

This Company has a high employee turnover rate, because it's a Construction Company and normally the younger employees do not stay around long enough to capture the full vesting.

The 401K assets are tangible and solvent, by LAW the 401K assets and accounting have to be available for viewing by the remaining people in the plan.

If the Company has 100 people within the 401K plan, and it's composed of 30 LONG-TERM employee and 70 SHORT-TERM employees than the UNCLAIMED vesting becomes a LARGE number.

Normally the UNCLAIMED match is rolled over to be used by the Company for future Company matching.

If thirty employees leave the Company with $30K of unearned vesting in the 401K retirement Plan and only two remain ( EMPLOYER and EMPLOYEE) than each person gets an extra $15K.



It's booty time....

Background:
http://www.research401k.com/salary-deferral-contributions.html