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employer contributions and mandatory participation


Guest A Montez

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Guest A Montez
Posted

If a governmental money purchase plan has only employer contributions is participation in the plan mandatory or may employees elect not to participate in the plan? I've heard that participation is mandatory in this case, but I haven't been able to find any supporting authority.

Posted

It depends on the terms of the plan. In some cases, employees may elect to waive participation in the plan (e.g., in order to have a deductible IRA. In others, all employees participate.

Employee benefits legal resource site

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