Entry Date for Short Plan Year

[Guest esi-jht]

First year of plan is a short plan year 2/1-12/31. Plan has 6 mths entry requirement w/ entry dates of first day of plan year and first day of 7th mth of plan year. If an employee has met the requiremetns and would come in on the first entry date, is the entry date 2/1 or 1/1? Plan uses compensation from date of entry so I need to decide if I only want comp from 2/1 or 1/1. I don't know why I'm getting myself confused on this issue. Thank you.

[Just Me]

First, I hope that if you really posted this at 1:34 in the morning, that this issue was not keeping you up all night.

Second, I don't think you can make any kind of argument that someone entered a plan before it was effective, so I'd vote for Feb 1.

Third, the interesting question becomes what is what is the first day of the 7th month of the plan year for mid-year entrants. Does the plan document say July 1 or 7th month? Seems like the 7th month would be August 1.

But that's...just me.

[david rigby]

I'm surprised the plan does not have other language that covers those employed at the initial effective date of the plan.

[Guest esi-jht]

Pax, Thank you so much. You are correct. I knew I was just having a major blank out on this one. The plan definitely has entry on effective day of plan. Thank you.