Changing Plan Year

[Guest kstorch]

Are there any issues associated with switching from a fiscal plan year (may to may) to another fiscal plan year (july to july) with respect to making a profit sharing contribution. Would you end up with a short may and june plan year before the new july to july kicks in?

[Mike Preston]

Yes.

[RCK]

To your first question, if you count hours to determine vesting, you have to be careful how you handle the short year. If you do elapsed time, your compliance is automatic.

RCK