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3% Non-Elective Safe Harbor Contribution and Re-Hired E/ee


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Posted

Employee who was a participant in employer's 401(k) plan terminated employment September 30, 2001 and was rehired Dec. 1, 2001. Employer will meet the safe harbor by contributing the 3% non-elective contribution. Since the e/ee did not incur a one-year break in service, then the e/ee will receive 3% of comp. from Jan 1, 2001 to Sept. 30, 2001 and from Dec. 1, 2001 to Dec. 31, 2001, correct?

Posted

it doesnt even matter that the ee resumed work. he was a participant, and all nhces, regardless of hours worked or last day must receive the 3% safe harbor

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