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A participant terminates employment 12/10/08. The client pays her severance until 1/10/10. The participant passes away at the end of 2009. Based on the Plan Document if she dies hours are not required for the Profit sharing contribution. My guess is that she is entitled to the PS contribution for 2009. If she would have received the severance within 2 1/2 months after termination it could have been avoided.

Any thoughts? Am I correct?

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