Vesting Changes

[justatester]

I have a plan that was 100% vested for the match & profit sharing. They have amended their plan to now have a vesting schedule for anyone hired after 1/1/08. The new vesting is a 2 year cliff. Would a BRF test be required?

Another BRF question, distribution options:

1) a group of employees within a plan are allowed in-service withdrawals prior to age 59 1/2. (5 years of participation and contribs must be in plan for 2 yrs) This is a protected benefit only allowed to a small group of ees. Does the plan need to do a BRF test since this option is not available to all?

[401 Chaos]

Just curious if anyone had an answer (or at least general thought) on this question.

Also, I would be curious as to how the grandfathering protection for existing participants works in a rehire situation. If an employee that had been working while the Plan had a 100% match terminated employment and then was rehired after the 5 year break in service, would they be grandfathered / protected with respect to the 100% match or would they be considered the same as a new employee hired after January 1, 2008? (Does the answer change depending on whether they previously participated in the 401(k) and so had a 100% vested account previously versus if they did not previously participate?)

[david rigby]

Duplicate post, with a response.

http://benefitslink.com/boards/index.php?showtopic=39718