Newer Employer

[austin3515]

Is it possible to elect the "2 year eligibility" provision but waive eligibility for active employees as of the effective date? I assume no, but please confirm.

[Bird]

No. You could use 0 or 1 and then change it.

[austin3515]

I thought of that too, but then thought "the people who benefitted from the immediate eligibility would be kicked out" but now that you mention it, as long as they have $5,000 of comp in their first year they would be ok. And then I guess you would say the next year go to 2 years and the same would apply. So it should only take 2 years in most cases, assuming people earn at least $5,000 in their first year.

Do I have it right?

[Bird]

I'm not sure it's foolproof but that's pretty much how it would go.