Car23

The actual plan language is in italics: "Each hour for which he is paid, or entitled to payment, for the performance of duties for the Employer during the applicable period …" (This tracks 2530.200b-2(a)(1). The plan follows the rest of -2(a) as well but this is not relevant to the question.) "The rules set forth in (b) and (c) of Department of Labor Regulations Section 2530.200b-2, which relate to determining Hours of Service attributable to reasons other than the performance of duties and crediting Hours of Service to particular periods, are hereby incorporated by reference." (Emphasis added.) (This tracks the requirements of 200b-2(f).) The requirements for vesting are "completion of 1,000 Hours of Service in the computation period", and for the profit-sharing contribution are "completion of 1,000 Hours of Service in the Plan Year." I am looking at 200b-2(c)(1), (4) and Example 5 and looking for thoughts on whether it can be interpreted to cover a situation where all the duties are performed before the end of the Plan Year but paid after year end in accordance with regular payroll procedures.

Document tracks 2530.200b-(a)(1). 2530.200b-(c)(1) states that hours are credited to the computation period in which the services are performed, except as provided in (c)(4), which is the situation where payroll period straddles two tax years. This suggests 2019 but obviously want to go with 2020 so I appreciate your response. Any others?

Employer's payroll period ended 12/28/19 but payment not made until 1/5/20 in accordance with regular payroll procedures. Employee hits 1,000 hours during payroll period ending 12/28/19. Does the employer have to credit the time in 2019 or, because it was not paid until 2020, can employer treat the hours for pay period ending on 12/28 as performed in 2020 based on the payment date. Reg. 2530.200b-2(c)(4) and Example 5 do not technically apply since the payroll period does not straddle the tax years; instead it is the gap between end of the payroll period and payment date that straddles the tax years. Is there any basis for extending the concept to the situation described? Thank you.

Thank you, very helpful and much appreciated.

Can a money purchase dc plan maintained by a municipality offer elective salary deferrals and matching contributions in addition to 457(b) plan? Not eligible for 403(b) or 401(k), so I think not. Am I missing something?