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That depends on what you mean by making someone participate.

401(k) plans are a special kind of profit sharing plan. From the perspective of the IRS, once an employee is eligible for a profit sharing plan, and has passed the plan entry date, that person is a participant in the plan even if no money is ever deposited for the individual.

Many employers have automatic enrollment plans that require an employee to take action if they don't want to participate. Employees who ignore the enrollment materials, or forget about the information provided, may feel as though they were forced to participate. When an employee chooses not to respond, he or she has essentially elected to participate at the default rate chosen by the employer.

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11y ago
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15y ago

Yes an employer can terminate a 401k plan. The contributions you made to the plan are yours, and you could take that money and roll it to your Traditional IRA using a trustee to trustee transfer. If your employer made any matching contributions to your 401k, you may be able to keep all or part of these contributions. This would depend on the vesting part of the 401k plan. Typically employer contributions are vested over a period of time, like 20% per year for 5 years. At which time the enitre matching contribution would be vested and eligible to be rolled to your Traditional IRA. Vesting requirements and many other rules are specified in the 401k Summary Plan. Each employer's Summary Plan will have some unique rules. Read the Summary Plan for your 401k plan. A copy of this plan should have been given to you when you signed up for the 401k. But ask for a new copy as this plan may change over time.

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12y ago

Required? Absolutely not. There may be trailing contributions after termination, but anything after those contributions are not required. There may be some special match (like a True Up, Profit Sharing, etc) but that is mostly for those who are still active with the company. All plans are different though, but it is not required.

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11y ago

An employee's 401k plan monies when that employee leaves the company can be cashed out or put into a retirement account.

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13y ago

no

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Q: Can an employee's 401k plan be moved when the employee leaves?
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Is an employer required to notify an employee of existence or eligibility of a 401k profit sharing plan?

Yes. If I offer a 401K, I must tell all qualified employees about it.


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What is the difference between a 401A and a 401K?

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Does Verizon Wireless offer 401K retirement plans for their employees?

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