Changing Entry Dates

[IRA]

Can you change entry dates for matching contributions from first day of month to semi-annual? The plan has one-year of service/age 21 eligibility.

[12AX7]

Eligibility is not a protected right in a plan. You can change it.

[IRA]

That is what I figured, except in doing it you can't make anyone wait more than 18 months so you may need to "grandfather" some employees.

[12AX7]

Yes, you have to stay with entry date rules in 410(a) regardles of the eligibility provisions.

[BG5150]

Can match have a 2-year wait? Or is that just PS?

[12AX7]

Can match have a 2-year wait? Or is that just PS?

As long as it's not a SHMAC, it's ok. Kinda makes things a little more difficult to admin and provides less incentive for participants within their first year of eligibility. I've never suggested it to a client, but perhaps in some situation it makes sense.

edit: makes me wonder if anyone has ever setup an EACA with a 2 year eligibility on the match.

[austin3515]

That is what I figured, except in doing it you can't make anyone wait more than 18 months so you may need to "grandfather" some employees

You don';t need to grandfather anyone. The whole point of semi-annual entry dates is to comply with the 18 month rule you are referring to.