OFAC

Hi, 

If a participant has a OFAC restriction can they continue contribution? how is the contribution affected? 

Thank you. 

What does OFAC stand for? Is this related to a retirement plan that is terminating? 

Are you asking about continuing deferrals? or an employer contribution? 

What kind of plan are you asking about? Defined Benefit, 401(k), 403(b) etc. 

1 hour ago, justanotheradmin said:

What does OFAC stand for? Is this related to a retirement plan that is terminating? 

Are you asking about continuing deferrals? or an employer contribution? 

What kind of plan are you asking about? Defined Benefit, 401(k), 403(b) etc. 

sorry, OFAC is Office of foreign asset control and I'm referring to Employee contribution and its related 401k plans. 

1 hour ago, PS said:

sorry, OFAC is Office of foreign asset control and I'm referring to Employee contribution and its related 401k plans. 

The post was made the Plan Terminations board. Is this related to a plan that is terminating?

I'm not very familiar with the office of foreign asset control, but I don't know why it would impact an employee's ability to contribute a deferral to a 401(k) plan, as along as they otherwise are eligible. I know its not the same thing, but even employee's whose pay is garnished because of court orders (such as child support, tax liens etc) generally are able to still contribute deferrals to the plan if they have pay left over.
Or are you asking about a participant's ability to invest in something subject to sanction? With their 401(k) money?  Or are you saying the participant's account is subject to OFAC sanctions? If its the latter, you really should ask an ERISA attorney. 

PS, what instructions (if any) have you received from the retirement plan’s administrator or trustee?

Or is your recordkeeper, third-party-administrator, or consulting business a subsidiary or affiliate of a financial institution that applies an OFAC-administered law?