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What happens to the contributions that have already been invested if an employee wants to opt-out after deductions have begun (i.e. after entry date)?

April 26, 2017begun contributions deductions employee happens invested opt-out wants

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What happens to the contributions that have already been invested if an employee wants to opt-out after deductions have begun (i.e. after entry date)?

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All contributions will remain in the employee’s 401(k) account as there are no IRS regulations in place to handle refunds in 2007. For plan years beginning in 2008, a corrective distribution can be processed for the participant to refund their contributions if they choose to opt-out within 90 days after the entry date.