A 401(k) plan participant is an eligible employee enrolled in the 401(k) plan. 401(k) plan participants also include former employees still enrolled in the plan, as well as beneficiaries of current and former employees. 401(k) plan participation is typically offered as an employee benefit to attract and retain workers and provides favorable tax treatment for employers.
Participation is often “vested,” meaning workers are eligible to participate after a designated period of employment. Any employer contribution might also be subject to a vesting schedule before the employee can fully claim it.