Gruegen Posted November 3, 2015 Posted November 3, 2015 A plan has a 6-month service requirement for 401(k) purposes and a 1-Year service requirement for matching contribution purposes. The plan is considering adding automatic enrollment of 5% for newly hired employees only. Further, the Plan wants to be considered an Eligible Automatic Contribution Arrangement (EACA). Can the 5% default contributions be delayed until the participant is eligible for the match (1 Year) or must the 5% automatic enrollment be applied once employees become eligible for the 401(k) (6-Months)? In other words, would waiting to automatically enroll participants until 1-Year of Service violate the uniformity requirement of Treas Reg 1.414(w)-1(b)(2)(i)?
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now