Is an employer required to withhold 401(k) deferrals on income in resp

[Guest Tara Curran]

Our client has an employer who recently passed away. He was a teacher so he only works 9 months of the year, but receives compensation throughout the entire year for the 9 months he works. Can the employer withhold his 401(k) deferrals from the compensation that is owed to him that is now being paid to his estate? Can you please provide me with a citation to support any answers?

[Kirk Maldonado]

I believe the answer is no. Section 401(k) plans provide for contributions by employees. Deceased persons, by definition, are not employees. However, that position is not universal (although it is the IRS position). Check prior threads for discussion on this. I think that there was one last week about making Section 401(k) contributions after termination of employment.