Note 11 - Retirement Plan

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Compensation and Employee Benefit Plans [Text Block]

11

.   

RETIREMENT

PLAN

The Company maintains the Friedman Industries, Inc. Employees' Retirement and

401

(k) Plan (the “Plan”). Employees fully vest in the Plan upon

six

years of service.

The retirement portion of the Plan covers substantially all employees, including officers. The Company's contribution expenses, which are determined at the discretion of the Board of Directors in an amount

not

to exceed

15%

of the total compensation paid during the year to all eligible employees, were

$200,000

for the year ended

March 31, 2021

 and

$200,000

for the year ended

March 31, 2020

. Contributions, plan earnings and forfeitures of non-vested accounts of terminated participants are allocated to the remaining individual accounts determined by a point schedule based on years of employment with the Company.

Employees

may

participate in the

401

(k) portion of the Plan. Employees are eligible to participate in the Plan when the employee has completed

six

months of service. Under the Plan, participating employees

may

defer a portion of their earnings up to certain limits prescribed by the Internal Revenue Service. The Company provides matching contributions under the provisions of the Plan. Contribution expense related to the

401

(k) portion of the Plan was approximately

$49,500

and

$50,000

for the years ended 

March 31, 2021

and

2020

, respectively.