Can we allow rollover contributions by new employees?
Yes. A plan can allow for rollover contributions to be made. This can be limited to just those employees who are participants or the plan can allow any employee who would be eligible to participate upon meeting the eligibility requirements.
If the plan does not currently allow rollover contributions or only allows participants to make rollover contributions, an amendment to the plan will need to be prepared to change the plan provisions to allow all employees. If the plan is not amended to allow this, it would be considered an operational error.
If you have more questions about rollover contributions to the plan, please contact your Nyhart consultant.
This article was last updated on February 12, 2013