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Showing results for tags 'eligibility waiver 401k eligibility'.
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New company estblished Feb 2018, wants to establish SH401k effective Jan 2019. Asset purchase of previous employer, no prev employer plan. Wants eligibility to be 12 mos/1000 hours, dual entry dates. There are numerous parttime staff. There are 2 or 3 who work at least 1000 hrs / year, will refer to them as fulltime. In order to make owner and other 1 or 2 fulltime employees eligible as of 1/1/2019, need to create a nondiscriminatory waiver for eligibility that won't cause parttimers to also be eligible. Can a plan provide an open elig provision as of 1/1/2019 that is for employees who are credited with at least 1000 hours in the previous year irrespective of 12 months requirement? In other words even though they may have less than 12 mos of service, if they had at least 1000 hrs credited, they are eligible 1/1/2019. My concern is whether the 1000 requirement in less than 12 mos could be deemed discriminatory. Thank you
