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Rehires and 401(k) Employer Matches


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Guest LLandau
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Plan Feature: Participants can begin to participate in the 401(k) plan at the beginning of the month following month of hire. ER matching contributions are made after an EE has been a plan participant for 6 months. Employees are immediately 100% vested in employer matching contributions.

Question: If an employee leaves the company and is subsequently rehired (and immediately begins to again participate in the plan) can the co. require the employee to again wait the 6 months for ER immediately vested matching contribtuions?

Am I correct in believing that break in service rules apply to waiting periods for participation but not necessarily to employer matches.

Thank you for any and all assistance.

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