Return from Military Leave - Right to Make up if Not Deferring Before Military Leave?

[rocknrolls2]

Company X sponsors a 401(k) plan for its employees. Employee M was hired in 2004 and did not elect to contribute to the 401(k) plan. A few months later, M is called into military service. In July, 2009, M returns from active military service. Is M entitled to contribute make-up deferrals even though s/he had elected not to contribute to the plan prior to going on leave?

[Belgarath]

Yes.

[rocknrolls2]

Thanks. Now I have learned of a twist in the facts. The employee was hired and was expected to work less than 1,000 hours in any employment year. Under the qualified plans, if the employee actually works at least 1,000 hours in any employment year, then s/he is entitled to become eligible to participate in the plans. In this case, the individual had a few months of service before being called up to the military. Thus, the safest approach would be to project his actual service before going on military leave to an employment year to see if he ever would have satisfied the 1,000 hour rule. Do you agree? If he never would have satisfied the requirement based on his pre-military actual hours as projected, we do not even get to the issue of being able to make up contributions to the 401(k) plan. Agree?