The first election

[fiona1]

401(k) plan - 1/1 plan anniversary - immediate entry. The plan imposes semi-annual change restrictions (1/1 and 7/1) to elective deferral changes. The employer also pay bi-weekly.

A participant is hired today, 8/1/2011 and is immediately eligible for the plan. Are there any rules in terms of how long this participant has for their election to begin right away?

For instance - suppose they make a 5% election on 9/15/2011, 45 days after they have become eligible. Is the employer required to start deducting on the next paycheck? Or can they wait until the next change date of 1/1/2012 to begin deducting the 5%?

The plan just states that elective deferral contributions shall be effective as soon as administratively feasible after a participant's entry date.

I don't see the purpose of making the participant wait until 1/1/2012 - but if the employer wanted to impose a 30 day window - or something similar - are they able to?

I assume this is a document issue? Or are there rules regarding this?

[BG5150]

Was that 5% election the first one the person ever made? If so, then I would say as soon as administratively feasible after you receive the election.

If the person had initially elected zero and now wants 5%, I'd say wait until the next change period.