Can an employer contribute to a 403(b) plan for a former employee?
Yes, if the plan allows, an employer can make nonelective contributions, up to the annual limits ($49,000 for 2011 and subject to annual cost-of-living increases), to a former employee’s account for 5 years after the date of severance. However, no portion of these contributions can come from money otherwise payable to the former employee by the employer and must cease at the death of the former employee.
Related Questions
- Can I contribute to a traditional IRA if I participate in my employers retirement plan? What about if my spouse participates in an employer sponsored plan?
- How much time does an employee have to contribute make-up contributions to an employer’s 401(k) plan?
- How much time does an employee have to contribute make-up contributions to en employer’s 401(k) plan?
