2-year eligibility

[FJR]

Can you have a 2 year eligibility and also have dual entry? Jan. 1 and Jul. 1 for example.. I know you can't for the pre-tax portion, but what about the match and profit sharing?

Thanks

[Archimage]

As long as the plan provides 100% vesting, you can have a 2 year eligibility requirement with the entry dates you are using. This is relevant to all contributions other than pre-tax deferrals.

[Tom Poje]

Watch out how you define terms in your document! be careful if initial computation period is anniversary and then shifts to plan year!

e.g. an ee hired 12/1/00 gets 1 year credit from 12/1/00 - 11/30/01, and then would also receive credit from 1/1/2001 to 12/31/2001. thus entering 1/1/2002 after just 13 months!

[FJR]

Tom, our document defines a year of service for eligibility as 12 consecutive months of service with 1,000 hrs. So wouldn't 2 years of service be 24 consecutive months? I think this would get you away from the problem in your example.

[Tom Poje]

That sounds okay, my comments were in reference to language contained in a Corbel document (and I am sure others)

definition of Year of Service:

"...An employee who is credited with the required Hours of service in both the initial computation period and the Plan year that includes the anniversary of the date on which the employee is first performed an hour of service, shall be credited with two Years of Service for purposes of eligibility to particiapte."

note that the above does not refer to vesting, only years of service for eligibility.