Active Participant Status

AAA

DEFINITION of 'Active Participant Status'

Active-participant status is a reference to an individual's participation in an employer sponsored retirement plan. The plans which qualify include:

1. Qualified plans, such as profit sharing plans, defined benefit plans, money purchase pension or target benefit plans and 401(k) plans
2. SEP IRAs
3. SIMPLE IRAs
4. 403(b) plans
5. Qualified annuity plans
6. Employee Funded Pension Trusts (created before June 25, 1959)
7. A plan established for its employees by the United States, by a State or political subdivision of the United States, or by an agency or instrumentality of the United States or any of its subdivisions

INVESTOPEDIA EXPLAINS 'Active Participant Status'

Typically, the employer will indicate on the individual's Form W-2 if the individual is an active participant by checking the 'Retirement Plan' box. Individuals should check with their employers to be sure.

RELATED TERMS
  1. 401(a) Plan

    A money-purchase retirement savings plan that is set up by an ...
  2. 401(k) Plan

    A qualified plan established by employers to which eligible employees ...
  3. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
  4. Defined-Benefit Plan

    An employer-sponsored retirement plan where employee benefits ...
  5. Defined-Contribution Plan

    A retirement plan in which a certain amount or percentage of ...
  6. Simplified Employee Pension - SEP ...

    A retirement plan that an employer or self-employed individuals ...
Related Articles
  1. Retirement

    If I participate in my company’s ...

  2. Retirement

    How IRA Contributions Affect Your Taxes

  3. Taxes

    10 Money-Saving Year-End Tax Tips

  4. Retirement

    Is a person an active participant in ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center