Eligibility - Plan Entry Date?

[R.G.]

401k plan with age 21 and no service requirement for employee deferrals. Entry date is first day of the month coinciding or next following date requirement met. If an employee was hired on December 2nd (which was a Monday) would they enter the plan Dec. 2nd or Jan 1st? I am thinking they would enter Dec. 2nd because that was the first business day of the month. Thoughts?

[BG5150]

JAN.1 Plan doc doesn't say "first business day of the month". It says "first day of the month."

Sunday is a business day for some companies, anyway.

[R.G.]

Would the answer be different if the employee's date of hire was Dec. 1st (which was a Sunday) but they didn't report to work until Dec. 2nd?

[BG5150]

I would say so.