Employed On Last Day of Plan Year

[Guest ElizabethERISA]

Does anyone know if there is a requirement that:

IF the plan provides that to share in an allocation the participant must be employed on the last day of the plan year,

THEN the plan must also provide that if a participant dies, retires, or becomes totally disabled in a plan year the last day of the plan year requirement does not apply.

I thought it was a requirement, but I can't find any authority on this.

Thanks!

Elizabeth

[Mike Preston]

And I don't think you will.

[J Simmons]

I think its optional, depending on what is written into the plan document.

[K2retire]

It is an option in the document. It is a very common option, but not a requirement.

[Jim Chad]

In Corbel's prototype all three are seperate options.

FWIW I always suggest marking the box for death because I don't want to play "let's kick the widow". And I always recommend against the other two becasue I have seen to many sticky situations where it is difficult to say yes or no, this person is retired or disabled.