End of year requirements for Profit sharing and non-electives

[dragondon]

Is it legal to specify that you have to be employed by the company on the last day of the year to receive profit sharing (new comparability, pro rata ect) even if they have earned eligibility throughout the year to be eligible for the profit sharing? Also is this possible to do with safe harbor non elective contribution or do they have to receive the non elective distribution regardless of their employment on the last day?

[Bill Presson]

PS - yes to last day requirement (subject to discrimination testing)

SHNEC - no to last day requirement