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Money purchase plan has single entry date. If someone meets eligibility during the year, they become eligible as of the beginning of the plan year. Plan sponsor uses a temp agency to "test drive" workers. If they like a worker, they hire them after 3 or 6 months. Once hired as a regular employee and no longer temp, So it is possible for a worker to meet eligibility during the plan year and have worked as a temp for part of that plan year. The question is how to calculate the contribution for a participant who was a temp worker for part of the year. Do you have to get the compensation paid by the temp agency for that period? Or do you just use the compensation paid by the plan sponsor from the date the worker became a regular employee?
