pmacduff Posted April 24, 2023 Share Posted April 24, 2023 Bumping this forward again...too easy or too hard????? Hello All - I'm sure this is a very easy question but I need clarification for my elderly brain. [Calendar Basic 401(k) safe harbor match plan. - 1 YOS, age21, quarterly entry.] Large portion of client's work force is seasonal (work, term, rehire) so of course we are tracking them for LTPT eligibility. Here is my question: Employee works over 500 hours in 2021. Terms in 2021. Rehired in 2022 and works over 500. This person has 2 years of eligibility credits toward LTPT service, correct? Different employee works over 500 in 2021, terms, rehires in 2022 but not over 500. This person's LTPT service counting can start over since the consecutive PY cycle is broken, is that right? I'm getting myself confused on those who term as well as the whole "consecutive" idea. Thanks in advance for any comments. Link to comment Share on other sites More sharing options...
401kology Posted June 6, 2023 Share Posted June 6, 2023 Hi pmacduff - I am reading through all of the LTPT rules and wanted to respond: 1st employee with 2 consecutive years over 500 hours - yes 2 years of eligibility. If they work over 500 in 2023, they would be eligible 1/1/2024 2nd employee - did not meet the consecutive plan year requirement, so is not eligible and the LTPT service counting starts again in 2023 I would assume that the LTPT employee, if not actively employed on 1/1/2024 would fall under the rehired employee rules and would be eligible on their rehire date in 2024. Link to comment Share on other sites More sharing options...
pmacduff Posted June 14, 2023 Author Share Posted June 14, 2023 That you for the response, greatly appreciated! Link to comment Share on other sites More sharing options...
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