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401(k)Immediate Eligibiltiy & Enrollment?


Guest wgray

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Posted

We are considering immediate eligibility for participation in our 401(k) Savings Plan, eliminating the current 6 month waiting period.

If we decide to make this change, does anyone know of any ERISA or other requirements that obligate us to ensure an employee can enroll and contributions begin within a certain time frame? Any suggestions/experience on this is appreciated.

THANKS!!

Posted

WIth immediate eligibility you must hand the employee enrollment materials their first day of work, get them to sign for the materials in case of slow return, and permit deferrals no later than the second pay after employment.

Specific regulations? I don't believe so, but under audit the IRS will want to see what you did, and I don't think anything else will pass muster.

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