At What Point is SARSEP 50% Participation Level Measured?

[Christine Roberts]

Is it possible to satisfy the 50% participation rule for SARSEPs at any point during the plan year (e.g., the last quarter or last two months of the year), or is it necessary that the threshold be met at all times during the plan year??

[Gary Lesser]

The rule is 50% of the employees eligible to participate. Thus, it would appear that the rule must be satisfied as of the end of the year, but based on the highest number of eligible employees fot that year. There is no minimum amount required, thus a $1 elective contribution would appear to be okay (and count that employee as having participated).