ecphcs2

Thank you for the reply. I appreciate the feedback.

Plan provides for nonelective employer contributions and permits an election with respect to the time and form of payment. For a newly eligible employee, it seems the 30-day rule would apply to permit an election regarding time and form of payment within 30 days of initial eligibility. The 30-day rule includes the requirement that the deferral election can only apply to compensation paid for services performed after the election. If the only contributions are nonelective employer contributions (thus the employee can't choose whether or not to defer it to the plan), does the requirement that the election apply to compensation paid for services performed after the election have any application? In other words, if the employee becomes eligible on March 1 and makes a time and form of payment election within 30 days of March 1, and the employer makes a $5,000 discretionary contribution on November 1 - is the time and form of payment election applicable to all of the $5,000 discretionary contribution? It seems that it would be.

I've edited the original post. Sorry for the mistake.

Plan has 1 year of service requirement, and shifts eligibility computation period to calendar year after initial computation period. Employee hired on March 1, 2022 and then terminates on May 1, 2022. During that time period, worked 250 hours. Employee is rehired on June 1, 2023 (not 2022, as was mistakenly stated in my original post). Does the eligibility computation period still shift to calendar year, even though rehire happens outside the initial 12 month period? I don't find this clearly addressed in the regs. It seems the better approach is to shift to calendar year, but is not clear.