Company Retirement Contributions once an employee Reaches Age 65

sheneman

What practices are common to our field in terms of company contributions to retirement or 401k funds after an employee reaches age 65? Assume that the employee does not want to retire and the company has no mandatory retirement policy in place. Thanks!

ritamcguire

In regards to company contributions or any other company 401K policy, there are no differences based on an employee's age and there shouldn't be. A 65 year old employee gets the same 401k benefits as a 30 year old employee. The only differences would be those federally mandated such as no 10% penalty for withdrawals after 59.5 years of age.

sheneman

Thanks!

Don D

I've participated in four 401k programs. One had a dollar for dollar match up to 7%, one dropped its match altogether when times got tough and the other two had dollar for dollar match up to 4% and 50cents on the dollar for the next two%. Two of them had separate plans for salaried and hourly (union) with separate matches. But, none of them had any separate plan or match due to age. I would think that's not legal.