LKSmoke

Several years later, but a question that ties into the whole "when does a Key Employee become a Former Key Employee?" Dad was 100% owner through 2019. In 2020 two children became 50/50 owners. Two other children are not owners for 2020, but are participating in the plan. Dad retains his Key status through family attribution, but what about the 2 siblings who are longer Key through family attribution? Do they become Former Keys in 2020 or 2021? Thanks!

An employee was a nonresident alien receiving non-US source income for a few years. He comes to the United States, and is no longer a statutory exclusion for plan purposes. Does his service during the period prior to his change from a statutory exclusion to an eligible employee class count toward determining his plan entry date and determining his vesting service? Thanks!

Thank you!

A Safe Harbor Plan is amending eligibility from elapsed time to hours of service to trim out the part-timers. Anyone who has already met the elapsed time requirement must be permitted to enter the plan, but anyone who has not yet met the elapsed time requirement by the time the amendment goes into effect will be required to meet the 1000 hr/12 month rule. My understanding is that, unless the employee moves into a class of employees that is defined by the plan as excludible by definition, once you're in, you're in. As an employee who has met eligibility requirements under prior eligibility rules, you may continue to participate in the plan, and you are therefore eligible to continue receiving the Safe Harbor contribution. This is being questioned, and I can't find any information that confirms or denies my assumption. Thank you!