leesuh12

I am looking for insight on when money has to be withheld for automatic enrollment plans. For example: Plan has: Age 21 & 3 months of service for eligibility Entry Date is first day of month following meeting requirements If a person meets eligibility on 10/16, they can enter on 11/1. Does the plan sponsor actually withhold the money on the 11/1 pay period if no election or opt-out has been chosen by participant? Or do they wait to withhold until the Opt-out period has ended?

Basically, if the surviving plan (A) has a less favorable vesting schedule for the match source than the surviving plan (B), can you apply (A)'s vesting schedule to the (B) participants post merger? Or do you have to maintain the more favorable vesting to those participants of (B) for all contributions, new and old? This is in reference to Code §411(a)(10)(A)

Over a year ago, someone posted the below message. There were no responses, but I am hoping to get some feedback for this exact scenario. Please let me know if you have any thoughts. Company A (surviving plan) acquires Company B and the plans will be merged effective 1/1/2017. For the company match, Company A (surviving plan) has a 1-5 year graded vesting schedule and Company B has a 4 year graded schedule. Can Company B increase the existing matching vesting schedule to 100% vesting for existing participants and then be on the same vesting schedule as Company A (surviving plan) for any new matching contributions effective 1/1/2017? Or does the merged plan need to keep the Company B employees who were eligible before 1/1/2017 on the more favorable 4 year graded vesting schedule