IRC Code 414(u) military deferral, Rev Proc 96-49, CFR

[Guest Enda80]

http://public.findlaw.com/mboards/webx.htm...0@.ef068a3/1977

IRC Code 414(u) military deferral, Rev Proc 96-49, CFR

1002262, IRC 414(u)(3), DOL Reg. 20 CFR 1002.265©

I was doing some research on these topics. I have a

brother in the military. Does anyone have any info on

how this applies to a benefit plan.

t has to do with military leave. What happens if the employee benefit plan has a last day provision, and the employee goes off for his or her military service before the last day of the year? Does the employer have to make a contribution for that year?

Also, anyone with any info on plan terminations?

[QDROphile]

Rights generally depend on the return to employment after the military service, within the prescribed time. If the employee returns with rights, the result is that the employee is treated as if employed during the military service (including a last day requirement).

[Guest Enda80]

Rights generally depend on the return to employment after the military service, within the prescribed time. If the employee returns with rights, the result is that the employee is treated as if employed during the military service (including a last day requirement).

So does that mean the employer would get away with not making a contribution during the first year that my brother went off to the military, if my brother left on June 6, 2007 for the military, even though he had worked every day of the year before that?

[QDROphile]

The correct outcome depends on many things, including terms of the plan, but section 414(u) would not require a contribution unless he returns to employment. You might look at the summary plan description for the plan to check on conditions for contributions.