Otherwise excludable

[ombskid]

Law Partnership Ketchum & Cheetum LLC has one employee Eloise.

Eloise works over 1000 hours in 2003 (or any year).

K & C closes it's doors.

Ketchum forms Ketchum LLC. Eloise works less than 1000 hours for 3 years.

If Ketchum LLC forms a 401(k) plan, does Eloise have to be eligible?

[Jim Chad]

Would the answer be based on common ownership? Anyone?

[Bird]

I don't think she has to be eligible. It's not a controlled group or shared employee situation, and Ketchum doesn't need the prior service to establish his/her own eligibility.

[ombskid]

I think common ownership is the only factor, so I was making sure I wasn't missing anything.

Thanks