Dtandardized Plan .... 500 hour rule

[Moe Howard]

Employer has "standardized" profit sharing plan.

An employee met the eligibility requirements on 04/17/03. His entry date will be 07/01/03. Same employee terminated employment in Oct 19, 2003.

Plan document says that in order for a participant to share in the allocation of employer's discretionary contribution ... he must work over 500 hours during the year or be employed on the last day of the plan year.

He worked 960 hours in 2003 ( 01/01/03 - 06/30/03), prior to his 07/01/03 entry date ... AND worked 480 hours in 2003 (07/01/03 - 10/19/03) after his entry date.

Can he share in the employer's 2003 contribution?

(True that he worked more than 500 hours (namely: 1440 hours) during the plan year 2003 .... but most of those hours were worked prior to his entry date. He worked less than 500 hours after his entry date and he was not employed on the last day of the plan year 12/31/03)

[Harwood]

"During the year" is during the Plan Year.

I don't think you get to ignore hours before the entry date.