Employees who are rehired after a break in service.

[katieinny]

ER had a plain old Profit Sharing plan up until 1/1/02 when it was amended to be a Safe Harbor 401(k). Several EEs in 2002 are rehires. Some of these EEs had met the 1 year/age 21 eligibility requirements, but had never entered the plan because they were not EEs on what would have been their entry dates.

Some EEs were gone for a period longer than their period of employment. Is this a break in service? Do they have to meet the eligibility requirements again when they are rehired?

Some of the EEs were gone for a period shorter than their period of employment. Since these EEs had previously met the eligibility requirements they are considered immediately eligible upon their rehire date. Do they enter the plan on the next entry date following their rehire date? (Remember that they had not entered the plan during their first period of employment.)