Guest good2brich Posted July 12, 2004 Posted July 12, 2004 A client of mine is closing up shop and needs to terminate their 401(k)plan as of 8/1. Notices went out on 5/1. For the employees who were hired in April and fired in May, are they new participants in the plan (assuming the plan uses age 21 and 1 year)? Are they counted in the adp test or top heavy tests? Assuming that the plan fails one of the non-discrimination tests, would they get a contribution? thanks for all your help.
david rigby Posted July 12, 2004 Posted July 12, 2004 (assuming the plan uses age 21 and 1 year) Hired in April and fired in May? How can such an employee be a participant? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Guest good2brich Posted July 12, 2004 Posted July 12, 2004 I did not know since the plan terminated if the company had to give them something.
Blinky the 3-eyed Fish Posted July 12, 2004 Posted July 12, 2004 The plan termination doesn't void the plan document's provisions. Read the document. It is your friend. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
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