Can I participate in my company’s 401(k) plan?

  1. You first need to fulfill certain conditions, such as:
    1. Attainment of a certain age, usually 21
    2. Number of Hours of Service, for example 1,000
    3. The ability to defer into the 401(k) vs. eligibility to receive an employer contribution can have different condtions attached to each
  2. Next, you must wait until an “entry” date. Examples of entry dates are the next January 1 or July 1; or the first day of the calendar quarter;
    1. There could be different Entry Dates for deferring into the 401(k) vs. being eligible to receive an employer match
  3. Eligibility conditions will be spelled out in the plan’s Summary Plan Description (“SPD”). If you do not have a copy of the SPD, ask your HR Department for one.

Why don’t I get my company’s match or profit sharing contribution?

  1. You may not be eligible for the plan yet.
  2. You didn’t defer into the 401(k), a necessary condition for receiving a match.
  3. You didn’t fulfill certain eligibility conditions, such as:
    1. Last day of the year employment
    2. Hour of Service during the Plan Year