Exclusion of Eligible EE to Defer

[Guest saotampa]

We have a SHNE 3% plan that failed to allow a rehire to defer to the plan when she came back. We need to calculate the deferral contribution based on 3% of compensation for the 2006 plan year plus earnings through the date deposit is made. She was offered the plan effective 4/1/07. I don't think the ER has to make up the deferral for the first three months of 2007 because she was offered the plan with at least nine months left in the plan year. I looked at Rev Proc 2006-27 and I think my assumption is correct for 2006 and 2007, but just wanted to make sure. Thanks for any insight.

[Archimage]

Yes, I agree.