PLAN ENTRANCE DATE EXAMPLE (1 OF 2)
01.Core Concepts
• Helium Limited operates a money purchase pension plan • Entrance dates: January 1 and July 1 each year • On April 12, Year 1, Bob turned 21 years old and celebrated three years of service. • On November 15, Year 1, Cathy, age 25, celebrated her one-year anniversary of employment. Bob is considered a participant in the plan on July 1, Year 1 and Cathy a participant in the plan on January 1, Year 2. Both employees were required to wait for entrance into the qualified retirement plan past their exact eligibility date, but neither was required to wait for more than six months past their exact eligibility date. Thus, the plan meets IRC entrance requirements.