Profit Sharing Eligibility
Because the contribution is tied to the 401(k) plan, eligibility is based on a calendar year, in alignment with our 401(k) plan year. To be eligible for the contribution, you must work over 1,000 hours in the plan year on which the contribution is being calculated. When calculating the Profit Sharing contribution amount, certain limits apply, based on IRS definitions. Refer to full plan description for more information.
Mary was hired March 13, 2017, and worked over 1,000 hours in 2017. Mary IS eligible to receive the Profit Sharing contribution made in 2018 for the 2017 plan year.
James was hired August 1, 2017. He did not work more than 1,000 hours in 2017. James is NOT eligible to receive the contribution made in 2018.
Alice was hired June 30, 2018. Since she did not have hours in 2017, she is not eligible to receive a contribution in 2018. Alice will be eligible for a contribution made in 2019 as long as she works 1,000+ hours in 2018.