Dougsbpc Posted December 14, 2015 Share Posted December 14, 2015 An employer sponsors a 50 participant 401(k) plan. They recently leased an employee for the first time. She has now been working with them for 6 months and now the plan sponsor wants to hire her. Even if she would have stayed with the leasing organization, she worked 35 hours a week and after one year would be considered "substantially full time" and would have had to be included in the plan. The leasing organization does not maintain a plan of any kind. Would the 6 months of service with the leasing organization count toward hours for eligibility and vesting once they hire her as an employee? Thanks. Link to comment Share on other sites More sharing options...
masteff Posted December 15, 2015 Share Posted December 15, 2015 6 months is not year, so no because she did not actually reach the definition of a leased employee under 414(n). Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra Link to comment Share on other sites More sharing options...
mariemonroe Posted November 28, 2017 Share Posted November 28, 2017 I think you ignore the one year requirement pursuant to 414(n)(4)(B). Link to comment Share on other sites More sharing options...
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