Which of the following is NOT a requirement for an employee to be eligible for 401(k) plan contributions?

To understand why 'insurance coverage' is the correct answer, it’s important to recognize the fundamental requirements for an employee to be eligible for 401(k) plan contributions.

Age, service time, and employment status are all legitimate criteria that can dictate eligibility for participating in a 401(k) plan. For instance, plans may have a minimum age requirement, typically set at 21 years old, and may require a certain amount of service time before an employee can become a participant. Employment status is also crucial, as only current employees of the sponsoring employer can contribute to the 401(k) plan.

Insurance coverage, on the other hand, is not a factor in determining eligibility for 401(k) plan contributions. While employees might need to have certain types of insurance coverage as part of their benefits package, it does not influence their ability to contribute to a retirement plan. Thus, it is clear that insurance coverage does not play a role in the eligibility criteria for making contributions to a 401(k), making it the correct answer.