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Yes, this is legal. The company has previously established eligibility requirements for the account that have been approved by the Internal Revenue Service and the Department of Labor. Some companies may do this based open length of employment with the company or hours worked or both.

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Q: Can a company restrict employee contributions to a 401k based on length of time with the company cannot contribute to the 401k until with the company 3 months Is this legal?
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What business ethics can contribute in business?

Practicing business ethics can contribute to the growth of your company in many ways including public relations, employee productivity, investment and even employee retention.


What is a true up match for 401k?

When an individual has front loaded his contributions to the 401k and has reached the maximum limits prior to the end of the calendar year. He has foregone the company matching on his contributions. The true-up feature, looks back to see how much the company should have matched had the employee not frontloaded his contributions and then "trues-up" the difference between what was matched and the maximum amount that could have been matched.


Which is true about employee handbooks?

employee handbooks typically have information about company policies, employee benefits, and the company's organizational structure.


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

A 401a plan , is set up by the company for a group of employees retirement and is solely funded by the company! Employees are not allowed to contribute there earnings, the company sets up a vesting schedule an makes the contributions based on a set amount or an incentive amount on a regular schedule..i.e . A company says everytime sales reach a magic number they will give each employee $250 into there 401a and so on unless the incentive goal is not reached.. A 401k is funded from the employees wages on a set amount or percentage and then some companies agree to Match employee to a certain percentage but any employees not in the 401k get nothing.


Can you contribute to an IRA if your company has you in a pension plan?

Yes, but part or all of your traditional IRA contribution might not be deductible, depending on your income (MAGI). Roth IRA contributions are not deductible, at all.

Related questions

What business ethics can contribute in business?

Practicing business ethics can contribute to the growth of your company in many ways including public relations, employee productivity, investment and even employee retention.


Can a company refund excess contributions made by an employee to a flexible spending cafeteria plan to that employee as taxable income the following year?

No. Your consequences for the overpayment will be reported and you will have to file an amendment for the year in which the overpayment occurred.


IS Employee and employer contribution can be duducted from the Employee Salary Please Guide Soonly.?

It depends on your terms of agreement for the job. In most cases, company's pay you by CTC - Cost To Company. In such cases, both employee and employer contributions are considered a part of your salary and the CTC. So, Yes, it is possible and is done in a majority of the private sector cos


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As an employee of BHEL i will be a means to the consistence growth of the world renowned company by my sincere and hard working effort.


What do you contribute to my company?

Every employee will contribute some or the other thing to their company, whether it be their creative ideas, their time, efforts, writing, selling skills or by managing it... hope it helps! You can check out my website here, www(dot)pressreleasepower(dot)com


When a company has a parent company does the employee work for the parent company?

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Which variable has the strongest relation to job satisfaction?

There are many variables to employee satisfaction. Salary amount, company morale, good management team and fun activities all contribute to employee satisfaction.


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ESOPs, employee stock ownership plans, are a retirement plan where employees are allocated shares of the company they work for into their retirement account. When the company does better and increases in value, so does the employee's retirement account. There is a direct correlation to company performance and employee rewards. Research (see NCEO, ESOP Association, ESCA, Verit website, or other) has shown that companies with employee ownership out perform companies without employee ownership. Employees feel like their contributions make a difference, productivity and morale improves.


What is a true up match for 401k?

When an individual has front loaded his contributions to the 401k and has reached the maximum limits prior to the end of the calendar year. He has foregone the company matching on his contributions. The true-up feature, looks back to see how much the company should have matched had the employee not frontloaded his contributions and then "trues-up" the difference between what was matched and the maximum amount that could have been matched.


What can you contribute to the progress of Koch Industries as an employee if you are selected?

I am hard worker and honest person. I know whats are my strength. I try to use my strength in the progress of the company.


What causes low productivity on a company?

Low productivity in a company is caused by a number of factors. Poor management, employee dissatisfaction, outdated systems and personal problems of employees all contribute to low productivity.


If a company gives an employee a laptop is the company notified what the employee searches?

It depends on the company. lil K!