Special Participation Date- PS Eligibility

[Coleboy1]

Plan has 1 year/ 1000 hours for eligibility. There was an amendment done to allow an employee into the plan early. Basically anyone employed on such and such a date is allowed into the plan. Client is putting in a PS contribution before year end. She does not want to include the employee who was let in early in the PS allocation. There is nothing in the document that state this employee is not entitled to an allocation. Document states that any participant who has worked at least one hour during the year is entitled.

What can be done? Amend the document now? 

BTW, that participant is me!

[Bill Presson]

1. is the plan top heavy?

2. Is everyone in their own group?

She has some flexibility perhaps, in amount, but if both are yes, you will probably get at least the TH and a gateway bump.

 

[Coleboy1]

It's an integrated allocation. Plan is not top heavy. PS is 3% of compensation.

[Bill Presson]

Sounds like you would share based on whatever the allocation rules are then.

[Coleboy1]

Thanks Bill!

[Bird]

2 hours ago, Coleboy1 said:

There was an amendment done to allow an employee into the plan early. Basically anyone employed on such and such a date is allowed into the plan. Client is putting in a PS contribution before year end. She does not want to include the employee who was let in early in the PS allocation.

Wow, so what was the point of the amendment? I suppose to allow 401(k) contributions?

[Coleboy1]

Exactly Bird! Just to allow me to contribute?

[Bill Presson]

17 minutes ago, Coleboy1 said:

Exactly Bird! Just to allow me to contribute?

Then make sure what the amendment says. If the amendment was specific for that eligibility, then you don't get anything else, unless top heavy.