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if an employee was forced to retire because of a directors ...

Customer Question
if an employee was forced...
if an employee was forced to retire because of a directors vote,yet still is getting paid under an employment contract, is he still eligible for the company''s 401k plan?
Submitted: 9 years ago.Category: Tax
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Answered in 12 minutes by:
8/1/2008
Tax Professional: Merlo, Accountant replied 9 years ago
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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Hello booster,

There are several requirements that must be met before someone can participate in an employer's 401K Plan. One of those requirements is that you must be "actively" employed. If you are currently retired, no matter under what circumstances, then you would not be eligible to participate, even though you are still receiving compensation under your employment contract.

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Thank you.

Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Verified
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