When does the employee become a participant/

[Guest Tammy2006]

The client recognizes the service with a predecessor employer. An employee worked 10 years for the predecessor employer, then left for 7 years and is now hired by the new company. Is he a participant on the date of hire or does he need to meet eligibility requirements?

When we asked the client if the employee was a participant with the predecessor employer, the answer was no (I need to get more info as to why he was not a participant, maybe he never worked 1000h)

Any cites would be really appreciated.

Thank you,

[QDROphile]

What you want to see first are the terms that provide for past service to be recognized. The regulations under section 401(a)(4) of the tax code address imputed sevice credit.