Eligibility Senior Moment

[thepensionmaven]

I should know the answer to this but...

Participant hired 7/26/2022, plan has 12 month/1000 hours, did not work 1,000 hours in 2022

Quarterly entry dates, wouldn't he enter 10/1/23?

Client completing application now, under the impression he'd be eligible 7/1/24

Can't the participant initially sign up for "x" % to in effect make up for 2023, then back down the %.

Plan calls for changes at any time.

And of course, he's be due the 3% safe harbor for 23.

[Mr Bagwell]

The earliest the employee could have become eligible would be 10/1/2023.  So you are doing well.

To be more specific, did the employee work 1000 between 7/26/2022 and 7/25/2023?  If so, 10/1/2023 entry date.  Needs the 3% sh from 10/1/2023 to 12/31/2023 if plan specifies participating comp.

If no 1000 hours the first year of service, then does plan shift to plan year?  it could be possible the employee is not eligible 10/1/2023, but worked 1000 hours in 2023 to become eligible 1/1/2024.

I don't see a path to 7/1/2024 unless employee turned age 21 in 2nd quarter of 2024..... and had the required hours prior to age 21.

[david rigby]

Perhaps this is picky, but it seems very likely the plan document already answers the original question.  If it does not, that might be indication of a document that needs fixing.

[CuseFan]

RTFD per David

[thepensionmaven]

As a general rule, o from date of hire through end that year, ie 7/1/22-12/31/2022.

The individual did not work 1,000 hours, but did in 2023.

Therefore I believe the individual enters 1/1/2024, no deferral from 1/1/24-6/30/204 will start with the first payroll in July 24, probably double up initially then drop her % or $ amount.

Of course election forms will be signed for the  7/1 entry.

Document calls for deferral changes at anytime.