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Credit Service for former NonResident Alien?


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A Canadian company has a US subsidiary.  The US company sponsors a 401(k) plan with a One Year of Service eligibility wait, and excludes non-resident aliens.

An employee in the Canadian company is moved to the US company.  While working for the Canadian company the employee had earned more than 1 year of service as measured under the US plan.

Does the Canadian service count under the US plan?  I'm thinking it would just as it would with any other controlled group member?

Thanks very much.

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Jakyasar, I think I found the answer in the EOB, if you use that resource.

Part D of the "Controlled Group" definition in Chapter 1 has a "Caution" that service with a foreign controlled group member is counted as service for certain plan purposes that are listed, but include Eligibility, Coverage, Nondiscrimination, and Vesting.  I'm assuming it generally is not an issue as long as the plan is excluding nonresident aliens until there is a cross-hire.

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