USERRA and Profit Sharing Plans

[LCARUSI]

I am unclear as to how a participant's benefit under a traditional profit sharing plan would be calculated if there is a period of military service.

As an example, let's consider an employee who is earning $2k per month and is in military service for 2 months and returns to employment with the employer. How would the employee's allocation be determined? Based on income of $20k (income actually earned by employee) or $24k (assuming there is a requirement to impute income as there is for a defined benefit plan)?

USERRA is clear that employees must make up missed contributions to receive matching contributions under a 401(k) Plan.

USERRA is also clear that compensation must be adjusted under defined benefit plans for periods of military service.

But I'm not sure how to handle the profit sharing plan.

Any thoughts on it?

[Everett Moreland]

I looked at this a few months ago and concluded that, in your situation, the employee gets a profit sharing allocation for $24k of comp.