SEP participant excluded from 401k

[ombskid]

Employee was participant in Client's SEP. Works less than 500 hours. Client wants to close the SEP and start a 401k with 1 yr/age 21 eligibility. Since employee never worked 1000 hours in a year, he is not eligible for the 401k - regardless of having been a participant in the previous plan.

That OK?

[John Feldt ERPA CPC QPA]

Yep.