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Is this eligibiltiy for 401(k) ok?


BG5150

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Plan has this elgibility:

Age 20 1/2

1 YOS (1,000 hrs)

Entry date:  First day of plan year following.  That's it.

Ont he surface it seems it violated the 18 months rule, but I am half-remembering (probably incorrectly) that the age 20 1/2 somehow buys me an extra 6 months, but I can figure it out.

QKA, QPA, CPC, ERPA

Two wrongs don't make a right, but three rights make a left.

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No, this isn't permissible. I believe you may be thinking about a plan that uses age 20-1/2 with a 6 month eligibility and a single entry date. That would be ok. But in the situation you have, a person might not enter until after the statutory entry date requirement.

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