ERISA Basics National Institute: Section 401(k) Plans
A 401(k) plan has a qualified cash or deferred arrangement that is part of a profit sharing plan or stock bonus plan. Under the Internal Revenue Code Section 401(k)(2), an employee may elect to make contributions to the plan, the covered employee’s contributions are not distributable before severance from employment, disability, death, attainment of age 59 ½, financial hardship, or termination of the plan, and under which the covered employee’s contributions are nonforfeitable.
This presentation will address the following objectives:
- Who gets the money?
- What money do they receive?
- Where does the money go?
- When do they get the money?
- How is the money administered?