Plan has last day entry

[CLE401kGuy]

Plan has last day entry for PS no age, no other service.

Plan does not require employment on the last day of the PY to receive PS allocation.

Participant hired 7/8/13 and terminates 10/15/13.

The person is therefore not employed on 12/31/13 which is the entry date.

However, they are employed during the PY and therefore meet the requirement to receive an allocation of PS.

Does not being employed last day then prevent them from entering the plan and thus no allocation.

My thought is if they're not employed on the entry date, they don't enter the plan and therefore no allocation.

Any other observations would be welcome. thanks

[Lou S.]

Unless you have an oddly drafted plan, employees who terminate before their entry date never become participants in the plan.

[ETA Consulting LLC]

Agreed.

You must, generally, meet the 'eligibility' requirements for the plan before the 'accrual' requirements for receiving a benefit applies. You're confusing eligibility with accrual.

Good Luck!

[CLE401kGuy]

Thanks, it's an odd design, but agreed that if they terminate they don't get the PS if hired in the same PY - they could come in for Elective and Match since those are earlier, but no PS if not employed last day and having entered the plan in a previous year

[BG5150]

Is the last day of the year the only plan entry date?

[ETA Consulting LLC]

Is the last day of the year the only plan entry date?

Technically, they could. I wouldn't violate 410(a)(4) since they are basically entering the day before the 1st day of the next plan year (which would be a single entry date with no minimum age and service). But it is an odd design. It would be something if they used compensation for the period of participation only