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Guest Capeair
Posted

My profile reads "Terminated with a break in service".

What does this mean and how does it affect the distribution. :unsure:

  • 2 weeks later...
Posted

You need to look at your plan's Summary Plan Description to find out what this means specifically.

Generally, terminated means that you don't work there anymore.

Break-in-service is a technical term that means that a plan year has passed in which you worked 500 or fewer hours. It is very common in ESOPs that you have at least one break in service year before you are eligible for a distribution and the plan may delay distributions even longer depending on many variables. You should be able to find that in the Summary.

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