MBCarey Posted February 17, 2004 Share Posted February 17, 2004 We have a plan that is debating about going to either a 401(k) Safe Harbor Plan or a New Comparability Plan. The eligibility for the current profit haring plan is entry on Jan. 1 after 18 months of service. Can we maintain this eligibility or do we have to reduce to 1 year of service for either Safe Harbor or New Comp. Link to comment Share on other sites More sharing options...
Tom Poje Posted February 17, 2004 Share Posted February 17, 2004 Hopefully everyone is 100% vested! I know they always say a plan can impose a 2 year wait if everyone is 100% vested, but it actually pertains that require more than a 1 year wait, not just a 2 year wait. anyway, a safe harbor can not impose more than a 1 year wait because the 401k can not impose more than a 1 year wait. new comparability or cross tested plans are still profit sharing plans and as such could have the eligibility you have described. you can also have a 401k feature (just not safe harbor) that has eligibility = to the 1 year max wait Link to comment Share on other sites More sharing options...
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