New company started 4/1/05 by two shareholders each over 5% owner. New employee hired 9/1/05.

New Plan says all employees hired as of 4/1/05 eligible with no service requirement but all other employees require 1 year with over 1000 hours. Does this pass 410?

at the 1999 ASPPA Annual Conference the IRS response was that they did not see this eligibility provision as a discriminatory amendment.
it needs to be rememebred that such comments are unofficial postions.
(This particular question is referenced in Q 6:14.1 of the Coverage and Nondiscrimination Answer Book Supplement - though for better or worse the actual Q and A sort of got combined into the answer.)
Ugh, don't remind me, I have to work on the Supplement for next year, but I can make this one a little clearer.

I would point out that the particular question was in reference to a Standardized plan, and did not address the issue of a new company, simply a new plan.
however the IRS response seemed broad enough to apply to all plans.
personally, I have a problem in a scenario if owners are let in immediately, and the rank and file who were hired on day 2 have to wait a year. that smells bad.