Expert: Allen - 11/18/2008

Question
Employee retiring 12-01-08 wishes to have 10,000.00 of the annual leave pay out contributed to the 401. Does the annual leave payout need to be done on the 11-30-08 pay period while he is still active in system? or is possible to process after the fact?

Answer
Answer to your questions are maybe and maybe.

Sorry to not give you a good answer because it depends on when you normally pay accrued leave. If you pay accrued leave in the final paycheck, the contribution should be processed at that time. If you pay it later, then the contribution should be processed when the remainder of the accrued leave is paid. However, if you do it after the final paycheck, you need to verify that your plan allows for contributions after employment has terminated.