http://www.zero2rich.com/why-arent-people-under-21-allowed-to-have-401k-plans.html Investing to One Million Dollars or Bust! Fri, 21 Nov 2008 13:18:59 +0000 http://wordpress.org/?v=2.5.1 http://www.zero2rich.com/why-arent-people-under-21-allowed-to-have-401k-plans.html#comment-153656 Laurence 'GreenReaper' Parry Thu, 25 Sep 2008 23:11:41 +0000 http://www.zero2rich.com/why-arent-people-under-21-allowed-to-have-401k-plans.html#comment-153656 I have seen plan documents that allow you to select it in your plan. It is likely a restriction to prevent younger people from costing the plan money (I'm guessing they are proportionately more likely to have lower salaries, less secure jobs and participate in more expensive plan activities). You can't restrict it past 21, though you can implement a vesting schedule that makes it hard for people to leave their job early with the plan's money. I have seen plan documents that allow you to select it in your plan. It is likely a restriction to prevent younger people from costing the plan money (I’m guessing they are proportionately more likely to have lower salaries, less secure jobs and participate in more expensive plan activities). You can’t restrict it past 21, though you can implement a vesting schedule that makes it hard for people to leave their job early with the plan’s money.

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