Guest pensionlady Posted February 15, 2001 Posted February 15, 2001 Can a 401k plan be designed with a 2 year eligibility requirement of 2 years of service for a match source?
Kristina Posted February 15, 2001 Posted February 15, 2001 The 401k deferral portion of the plan can not require more than 1 year of eligibility. The 401m match portion of the plan can allow for a 2 year eligibility requirement, but the match would have to be 100% vested at all times. Kristina
MWeddell Posted February 16, 2001 Posted February 16, 2001 As far as I can tell, you can have a 2-year eligibility requirement for the match if it is immediately vested. There's nothing in 401(m) analgous to IRC 401(k)(2)(D). I caution that I've never heard of this plan design before, so I suggest you research the issue more carefully than I just did!
Guest pensionlady Posted February 16, 2001 Posted February 16, 2001 Thanks for your reponse, I thought it sounded fluky, but from what I can see, it is permissible.
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