DATAIR VOLUME SUBMITTER DOCUMENT

[Guest Jerry]

I have a takeover plan which previously used a DATAIR Volume Submitter Document. There are no age or service requirements. The Entry Date is defined as "The first day of the Plan Year coincident with or next following the date the eligiblity requirements are satisfied, but in no event later than six (6) months after satisfying the eligibilty requirements." What does this mean? When would an employee hired between January 1st and July 1st enter the plan?

Thanks a ton to anyone who can help.

[Guest FormsRmylife]

The "but in no event later than six (6) months after satisfying the eligibilty requirements" language is to protect the plan from violating the rule that an eligible employee cannot be prevented from participating for more than 6 months. This text is intended to prevent a violation when you have a one year of service or an age 21 requirement.

Since you have no eligiblity requirements, the 6 month language can be read to have the odd effect of creating a monthly entry date (picking up each group of hires as they have been there six months), but that was never the intent. I am sure the drafter intended a first day of plan year entry date for your plan, but I am not sure that is what you have.

You could see if DATAIR will tell you how its users are interpreting this text. There is always some comfort in hanging together instead of separately.