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LTPT - eligibility period

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An over age 21 employee is hired 3/1/23 and works between 501-999 hours in the 12 months after her initial date of hire.  She then works between 501-999 in calendar year 2024.  

Lets say she reached 501 hours on June 1, 2024.  Am I correct then that her LTPT plan entry date is 1/1/25 and not 12/1/24 (6 months later) since not only is the LTPT eligibility period 12 months but if she goes over 1000 hours later in 2024, she would be eligible to enter as a "regular" participant on 1/1/25 and would not classify as a LTPT?

Thank you

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Does the plan use the rule to switch the eligibility computation period to the plan year?

Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance.

Corey B. Zeller, MSEA, CPC, QPA, QKA
Preferred Pension Planning Corp.

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