Active-Participant Status

Active-Participant Status

The state of belonging to an employer-sponsored retirement plan. One may have active-participant status in an IRA, 401(k), 403(b), or other, similar investment vehicles. An employer generally indicates an employee's active-participant status on the employee's W-2 form so the employee may take advantage of the tax benefits of the plan.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved