Short Plan Year--eligibilty for a contribution allocation

[KJohnson]

Plan year changes in 2002 creating a short year from 7/1-12/31.

If a Plan has a last day 1,000 hours requirement for a profit sharing contribuiton allocation what do you do with the 1,000 hours requirement?

You can find some guidance on short years regarding vesting, initial participation, 415, and 401(a)(17) on short years, but I haven't seen anything on benefit accrual?

[austin3515]

If you don't have the ERISA Outline Book I would get it. There's tons of examples on all these crazy quirks.

My recollection is that you need to pro-rate the year - i.e., if 1,000 hours required, use 500 instead (short plan year).

I highly recommend the book though, especially if you work a lot with these things...