401kyeah Posted May 29, 2016 Share Posted May 29, 2016 Are employers allowed to change the wait period for new employees from 12 months to 90 days, under the new rules for mid year change, assuming proper notification to all plan participants? Link to comment Share on other sites More sharing options...
Tom Poje Posted May 31, 2016 Share Posted May 31, 2016 probably yes. Q and A #37 at the ASPPA Conference the question was asked if you could amend a plan that included salaried only and allow hourly folks to be eligible and the IRS responded in the affirmative. the recently released guidance provided 3 prohibitions and then indicated that for all other changes you need to provide a 'notice......etc.' so I guess you read that as saying what you want doesn't violate one of the prohibition you can do it, at least that seems to be the intent of the law. The situation you describe is not one that the 7 examples describe, but the examples can't cover everything. example 7 is close, though it actually goes from changes entry dates for nonelgibles and making it harder for them to enter. on the other hand, I suspect if the situation you describe was to suddenly permit a new owner to become eligible, it wouldn't be the intent of the law to benefit an HCE in this way, but maybe that is my own rambling way of thinking. Link to comment Share on other sites More sharing options...
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