When is a participant entitled to receive employer matching contribution and/or profit sharing contribution?
Once the participant has satisfied the age and service requirements for employer contributions and has entered the plan, the participant would be eligible to receive matching contributions and profit sharing contributions. Additionally, the employer may have yearly conditions for the participant to also satisfy to receive these contributions each year. The employer may require up to 1000 hours of service each year and require that a participant be employed the last day of the plan year to receive matching contribution or profit sharing contributions. These requirements would be provisions in the adoption agreement.
Related Questions
- What is the difference between Employer Profit Sharing, Employer Matching and Employee Salary Deferral contributions?
- When is a participant entitled to receive employer matching contribution and/or profit sharing contribution?
- Which employees must an employer include when making a Profit Sharing contribution?
