I am writing to seek clarification regarding the enrollment restrictions for 401(a) retirement plans. My HR department at a NON-Profit has informed me that, according to IRS guidelines, I am only eligible to enroll in a 401(a) plan within the first 12 months of my employment. They have also indicated that I would not be able to enroll during any open enrollment periods thereafter due to these IRS restrictions.
I also was never told about the 401(a) company guidelines of enrollment as i never had to complete orientation which had the class where it would have been the only time your notified about this. as per my instructions of my manager (it not important you can do it later) that was 2 years ago still haven't.
I am seeking your assistance to verify the accuracy of this information. Could you please confirm if there is an IRS guideline that restricts 401(a) plan enrollment to the first 12 months of employment? If such a guideline exists, could you kindly provide me with the specific reference or documentation that outlines this rule?
