Vesting question

[mlp0816]

Have a client who has a 90 day service requirement to become eligible for the 401(k) and then entry on the 1st day of the month after the service requirement is met. Plan also states immediate vesting.

Once in the plan, the client offers a 10% employer PS contribution....question.... since the plan reads immediate vesting, should the PS contribution be calculated taking in account the 90 days that the participant was not in the plan? Or, should the PS amount only given for the time the Participant was actually in the plan? Appreciate the assitance...

[pmacduff]

document should define compensation & whether or not compension for allocation of Employer profit share is based upon the plan year, limitation year, from date of participation, etc.

[mlp0816]

Got it... thanks for the advice