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Military Makeup/Savings Plans |
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People who come back from military leave have specific rights that must be given to them, and one important right pertains to retirement plans. Under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), veterans of U.S. military service have the right to make additional elective deferrals under their employer’s deferred savings plans for the time they spent in military service.
The employer must allow such deferrals to be made during the period beginning with the veteran’s reemployment and lasting three times the period of military service, but no longer than five years. The employer must match the employee’s military deferrals to the extent it would have been required to do so if the deferrals had been made during the period of military service. Also, elective deferrals made for years spent in military service are not subject to the elective deferral or contribution limits for the year in which the deferrals are made and are not added to other contributions made for that year for purposes of determining whether those limits are exceeded.
For further information, refer to the following: IRC 414 (u) and 38 USC 4311-4318. |
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