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  • Irs Form 6388

Get Irs Form 6388

R.B. 909 the 2010 Cumulative List. Department of the Treasury Internal Revenue Service www.irs.gov Publication 6388 Rev. 6-2011 Catalog Number 48067N Explanation No. 1 Minimum Participation Standards The purpose of the Worksheet Number 1 Form 5622 and this explanation is to identify any major problems an employee benefit plan might have in satisfying the minimum participation standards of Internal Revenue Code section 410 a.

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Under the one-year break in service rule, if an employee incurs at least one break in service, the plan may temporarily disregard the employee's prior service for eligibility purposes. The employee will receive credit for that prior service only if he/she completes another year of service.

Under the one-year holdout rule, once an employee incurs a single break in service, pre-termination service is ignored until he or she completes one year of service following rehire. Then all pre-break service is immediately reinstated retroactive to the date of rehire.

(A traditional 401(k) plan may require 2 years of service for eligibility to receive an employer contribution if the plan provides that after not more than 2 years of service the participant is 100% vested in all plan account balances.

The SECURE Act (Setting Every Community Up for Retirement Enhancement) (enacted in 2019) provided that employees who perform 500 hours of service during three consecutive 12-month periods must also be permitted to participate in the employer's 401(k) plan.

An eligibility computation period is a 12-consecutive-month period used to determine whether an employee has completed a year. of service for participation purposes. Any plan must designate an eligibility computation period, except a plan that uses an “elapsed time”

1,000 Hours-of-Service Rule Generally, a “year of service” is a 12-month period during which an employee completes the number of hours of service specified in the plan. A plan may not specify more than 1,000 hours for this purpose.

Previously, part-time employees who worked fewer than 1,000 hours per year were excluded from such plans. Under the new rules, long-term, part-time employees who work at least 500 hours in three consecutive years (and have attained age 21) must be allowed to participate in 401(k) plans.

The maximum permissible service requirement for salary deferrals is one year of service, generally defined as the twelve-month period, beginning on the employee's date of hire, during which the employee has worked at least 1,000 hours.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232