Participant becomes Excludable Employee

[Guest jim williams]

Can a participant in a 401(K) Plan be prohibited from contributing to the plan if his job status changes to an excludable classification? I believe the only requirement is that the participant continues to vest in his account while still an employee.

[R. Butler]

Employees who change job status to an ineligible class are prohibited from participating. You are correct, they will continue to accrue vesting credit.