Lou81

Going back and forth on this.... Plan had eligibility of age 18, 1 year of service and 1/1 & 7/1 employee hired 5/8/2020 terminated 5/29/2020 worked 80 hours. Did not meet eligibility. The plan was amended 1/1/2023 to no service requirement, still age 18 and 1/1 & 7/1 The employee was rehired 1/20/2025 terminated 1/31/2025 Should the participant be eligible upon rehire? Appreciate it!

Yes, retirement date is 9/30/2026. The plan has no comp exclusions. Thank you!

He is not a self-employed employee and is paid on a W2.

A doctor is retiring but will be receiving payments based on A/R receipts for the next 6 months. 401(k) Plan defines compensation as 3401(a) comp and A/R payments are included in the income. Would these A/R payments be considered Post Severance Compensation (of course to 2.5 months/last day of plan year) or No? Thank you!

yes, he has requested to rollover 100%.

I am wondering how to handle this situation. HCE retires and is requesting a rollover of 100% of his account balance. The document states that distributions are paid out: immediately The plan fails the ADP test every year and he is due a refund. Should the plan pay out all of his account, except for current year contributions? or do we hold until after the APD test is completed next year? Thank you!

Thank you!

Hello. Participant is looking to take a loan to purchase a primary residence. He is purchasing a house. However, he is not planning on moving in right away, as he has a lot of repairs to do. Is there a time frame to consider this his primary residence? Thanks!

Having a discussion in our office..... Plan has immediate entry for deferrals and 90 days for match and profit sharing enter 1st of month following. (MT & PS have no allocation requirements) I have a participant hired 9/23/2024 and a termination date is 12/20/2024. Was not employed on 1/1/2025 but received a final payroll on 1/3/2025. Would she be entitled to receive the match and profit sharing?

Thanks Cusefan! So since neither hold out or rule of parity are check I will count the service he had is 2016...

Good Morning, Need some help- rehires always get me if they did not meet the eligibility requirements.... EE worked 9/19/2016-12/1/2016 Rehired 9/5/2025 on FTW document. 6 e is marked for 6 months of service, elapsed time. With monthly entry dates. Neither Rule of parity or one year hold out are elected. Since he was gone more than 12 month and more than a 5 year break in service and he did not meet eligibility, does his 6 months start over? Appreciate your input! Thanks!

That was my thought too Bri... Thank you~

Plan fails the ADP test. Running the corrections in FTW. Question - when including the earnings, do you net the fees or just use the earnings? Thanks!

Thank you ESOP Guy!

I have a new plan that has elapsed time for vesting. I just want to confirm that I am doing this correctly. The participant would have to be employed on the anniversary date to received vesting credit, correct? i.e. date of hire 4/5/2023. Terminated 12/31/2024. Therefore, he had 4/5/2023-4/5/2024 = 1 year. 4/5/2024-12/31/2024 = 0 I appreciate your help!