My clients attorney is shortly entering into arbitration settlement discussions for age discrimination lawsuit that his prior employer now wants to enter into settlement discussion. This was decided by the employer after 3 years, and only 2 of 8 scheduled depositions taking place.

Questions- can a employer 401k sponsor allow part of past salary reimbursement be credited to the prior employer 401k that he was actively participating in, and can the employee also get credited with the past employer matching contribution as well?

Is this prohibited or allowed under IRA / DOL Regulations and are there any prior history of this being part of an age discrimination lawsuit settlement arbitration awards as well?

Does the Plan SPD need to allow for this to occur as well?

Brian Nolan, Financial Planner – Princeton NJ