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Question

Asked 11/24/2009

Employer contributions after leaving company?

Our plan year runs from January to December 31. Our Summary Plan Description states that participants in the company's 401k will recieve company contributions for the plan year so long as they are "employed by the company on the last day of the plan year", or Dec 31. These contributions are usually made to participants the end of February.

My question is that if I was employed December 31, but leave the company (involuntary or voluntary) prior to the February distribution date, is the company still obligated to contribute to my account?

 
 
 
 
 
Answers

Answer 1/1 - Submitted 11/24/2009

Yes.. they are only concerned with This plan "year" , if you are employed on Dec 31st you are eligible, you can leave anytime thereafter, and they must contribute for that plan year, if the document states so.

 
 
 
 
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