Hours for Accrual Service vs. Vesting Service

[metsfan026]

Getting questioned on the setup, so I wanted to make sure there wasn't an issue.  Client wants to set it up as 500 for a Year ofAccrual Service (so they are eligible to receive a contribution) but 1,000 hours for a Year of Vesting Service.

Cash Balance Plan.  Entry is going to be 21 with 3 months of service.

Thanks in advance everyone!

[Bri]

Legally fine.  Any "issue" is HR's problem 😁

[CuseFan]

seconded

[Mike Preston]

Play close attention to top heavy benefits.

[metsfan026]

On 9/10/2021 at 4:03 PM, Mike Preston said:

Play close attention to top heavy benefits.

They are doing 5% into the Profit Sharing Plan, so we are 100% covered there.  What's then the minimum for the Cash Balance?

[Mike Preston]

Whatever satisfies 401a26.