K2retire

The base plan document says "A Particiant who incurs a Separation from Service will re-enter the Plan as a Participant on the date of his/her re-employment with the Employer, subject to the one year hold-out rule, if applicable, under Section 2.03(B)."

Yes. The participant terminated several years ago and was rehired in August, 2007. It is a calendar year plan.

The adoption agreement says "The one year hold out rule rescribed in Plan Section 2.03(b) applies to the Plan and all Participants." Since another option under that same section says "Applies to the plan, but only to a Participant who has incurred a Separation from Service" it seems reasonable to assume that all Particicipants would inlcude those with a Separation from Service.

I've just uncovered a situation that is new to me. A client has rehired a previous plan participant and wants to cover her immediately. (In fact, he has permitted her to defer and already matched her deferrals.) Unfortunately, his plan was written with a one year hold out rule for employer contributions. Is that something that can be self corrected to conform the document to the plan's operations?