Guest JBeck Posted February 17, 2004 Posted February 17, 2004 In a 401(k) plan with profit sharing contributions subject to a vesting schedule, if a terminated participant takes a distribution of his salary deferral contributions and then is rehired, does he have to repay his salary deferral contributions in order to have his profit sharing forfeiture account restored? Does the cash out buy back apply on a subaccount basis or based on the entire account basis?
Harwood Posted February 17, 2004 Posted February 17, 2004 Depends on the plan document. I have seen it both ways, in different documents.
Guest MikeD Posted February 18, 2004 Posted February 18, 2004 The participant should have to pay back both elective deferrals and employer contributions.
Guest AnnieP Posted February 18, 2004 Posted February 18, 2004 I'm curious as to why the participant would have to pay back the 100% vested salary deferral money. I thought that buy-back pertained to non-vested money.
Mike Preston Posted February 18, 2004 Posted February 18, 2004 Following anything other than Harwood's "opinion" on this is likely to find one's plan eligible for EPCRS.
Kirk Maldonado Posted February 18, 2004 Posted February 18, 2004 What do the statute and regulations say? Kirk Maldonado
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