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|Subject: Re: 401K has min. hrs worked reqrmt?||Date: 10/10/1998 10:14 AM|
|Author: TMFPixy||Number: 5966 of 76397|
The company that wants to change my employment status from self-employed freelance contractor (contributing to my Keogh) to part-time employee, told me today that their 401K program has a min. no. of hours = 1000/yr. to receive annual returns. If you don't have 1000 hrs/hr working for them, at end of year you get YOUR contribtions to 401K back, without interest. they don't contribute to it at all, anyway.
Is this legal?
Yes, it is. The 401k plan has defined eligibility for participation as a minimum of 1000 hours of work in the year, which is perfectly legal. In fact as long as you are not a 1099 employee or a W-2 employee in an excluded class of employees, they couldn't by law prevent your participation after you had worked that number of hours in the year.
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