Participant entitled to SHNE contribution?

[Dougsbpc]

Have a scenario where an employee became a partner of the firm sponsoring a 401(k) plan on 1/1/2022. However, they became sick just before 1/1/2022, and left the firm 3/15/2022. During 2022 they worked 0 hours but had $86,000 of ordinary income also considered self-employment income. Would they be entitled to a 2022 SHNE contribution for 2022?

As an employee, she was eligible for the plan.

Apparently, the firm paid her disability payments of $86,000 between 1/1/2022 and 3/15/2022. 

I know there cannot be an hours requirement (like 1,000 hours etc.) to receive a SHNE contribution. Just wonder if someone working 0 hours would even be considered eligible to receive a SHNE contribution. The plan document does not seem to address this.

 

Thanks.

[Paul I]

Check the plan's definitions of:

Disability, because the plan's requirements to be considered may be different from the definition was using to make the disability payments.

Hours, because the plan may provide for crediting of hours while the participant was considered disabled under the plan.

Compensation, because the plan may have rules about whether the payments made by the firm are considered as compensation.