Service Spanning Rule and expected entry date

[cpc0506]

Plan eligibility is age 21 and 6 months of service, with quarterly entry dates. Plan is a calendar year plan.

Employee is 32 years old when first hired. Here is the employment history:

Hired – 5/25/2011

Terminated – 9/16/2011

Rehired – 5/18/12

Terminated – 9/4/12

Rehired–5/20/13

Terminated – 9/11/2013

Rehired–1/7/2014

Based on the above information , what would be the employee’s entry date?

I raise this question because of the so called 'service spanning rule'. Not sure how it applies when service requirement is less than 12 months.

[ETA Consulting LLC]

9/16/2011 to 5/18/2012 is not a year, so you would span the service to get 5/25/2011 to 9/14/2012; which meets and exceeds the 6 month requirement. His entry would've been 12/1/2011, even though he wasn't employed then; so he would enter immediate upon his rehire on 5/18/2012. His plan entry date is 12/1/2011.

Good Luck!

[BG5150]

How is plan entry 12/1 with plan's entry dates at quarterly?

[Tom Poje]

cpc0506 - since you did not indicate any hours requirement, simply 6 months, you are under elapsed time. see page 6 of the IRS notes, in particular line c

for all practical purposes the person in question never 'terminated' since he was gone less than 12 moths.

min partic standards publication 6388.pdf

[ETA Consulting LLC]

How is plan entry 12/1 with plan's entry dates at quarterly?

Because I read 'monthly' even; despite the fact it clearly stated quarterly. This is why I always try to explain my reasoning. So, when I am clearly wrong, I you seen what I missed :-) But you're right, it would be 1/1; the first entry date after the 6 month period.

Good Luck!

[BG5150]

How is plan entry 12/1 with plan's entry dates at quarterly?

Because I read 'monthly' even; despite the fact it clearly stated quarterly. This is why I always try to explain my reasoning. So, when I am clearly wrong, I you seen what I missed :-) But you're right, it would be 1/1; the first entry date after the 6 month period.

Good Luck!

Just wanted to make sure I wasn't missing something.