flosfur
Jun 28 2005, 03:14 PM
Employee enter the plan on Jan 1 and July on or after the eligiblity is met.
Some employees will enter on 07/01/05, which is a Friday and happens to coincide with the pay period ending 07/01/05. Paychecks will be cut on 06/30/05.
Are the new entrants eligible to make deferrals from the 07/01/05 paychecks?
The problem is that the plan provides a matching contribution and 3% safe harbor contribution.
rcline46
Jun 28 2005, 03:51 PM
CODA arrangements have to due with constructive receipt. Deferrals must be made before a person has constructive receipt.
Now we are speaking of pay the person will have constructive receipt of on or after attaining and entry date. So if they have said pay, then they could order a deferral on that pay.
Put simply, if that is a paydate, then they can defer.