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This is their wording: We believe that we will save money on the plan by using the lower tax-free limit.

 

Translation: They use the lower tax-free limit to discourage people from using the plan while they can use the existence of the plan in recruitment efforts.

 

Real stand-up company. They had revenue of $600+ million last year so not a small shop.

 

Thanks for your response. I was hoping that wouldn't be the case but I guess I can keep on hounding them to change the plan.