Eligibility Question

[bzorc]

Plan sponsor has two groups of employees: "Exempt" and "Non-exempt"; both groups are eligible for the company 401(k) Plan

However, they wish to have two separate eligibility requirements for the plan: The "Exempt" group must complete 30 days of service, and they enter the plan on the 1st of the month following. The "Non-exempt" group must complete 60 days of service, and they enter the plan on the 1st of the month following.

Questions:

One, the prototype we utilize does not allow for a 30 (or 60) day requirement; it appears that it must be in months. Am I missing something?; and

Two, I don't believe you can have a dual eligibility requirement for the 401(k) feature of the plan.

Thanks for any replies.

[BG5150]

Why not do months?  It's so much easier.

For example, if it is 60 days, Someone hired on February 1, won't be eligible until May 1.  Their 60th day is April 2.  If it is 2 months, they enter April 1. 

On the flip side, someone hired July 2 or 3, they enter the plan Sep 1, as their 60th day is August 31 or Sep 1.  If using months, it's October 1.

It is MUCH easier to just do months. No counting involved.  But as you can see, you can have different results.  Most of the time it won't matter.  But there may be outliers like the situation above.  Using months, you can just look at the date and know when the entry date will be, without having to actually count the days.