Eligibility Requirements for 401(k) Retirement Plans
Friday, February 22nd, 2008There are certain criteria you must meet in order to qualify for investing in a 401(k) Retirement Plan. Some plans are restricted by your age, length of employment, your income (amount and sometimes type of compensation). Other requirements may consider your marital status and do you already participate in another retirement plan.
A 401(k) Retirement Plan requires you to have Earned Income to open an account or contribute. Earned income is income from salary, commission or other work related sources. Receipt of Alamony is also accepted. Passive income, or income you received from investment related dividends, annunities or rental properties does not qualify you to invest in a 401(k) Retirement Plan.
Married couples may not establish a jointly owned 401(k) Retirement Plan. All retirement plans are owned solely by the person establishing and contributing to the 401(k) Retirement Plan.
It is wise to discuss your individual criteria with a qualified investment advisor; or, with your employer to determine if you qualify to set up a 401(k) Retirement Plan
