I have a complicated situation. I have a Lincoln 403B from a nonprofit I worked for. They unfairly terminated me over a year ago, and I just won a settlement from them. I would like them to put the max allowable into my 403B – which seems to be 72k according to the IRS – to reduce this year's tax burden. (I'm then going to roll it over into an IRA.) From what I've read in IRS pubs, the employer can put money into a former employee's 403B, but not the former employee. Will this work?
Is this allowed? 403b contribution from settlement
byu/SnooTomatoes1796 inpersonalfinance
Posted by SnooTomatoes1796
1 Comment
Technically yes, but it depends on the plan’s documentation. Not all plans allow for post termination contributions.