Purchase Solution

Qualified Pension Plans

Not what you're looking for?

Ask Custom Question

May an employer use the following eligibility provision under a qualified plan: "employees who customarily work less than 25 hours per week are excluded for participation in the plan"? Why or why not? If this provision presents a problem, what could be done to address the problem?

Purchase this Solution

Solution Summary

The answer to this problem explains the legal perspective of IRC section 401(k) plans. The references related to the answer are also included.

Solution Preview

An employee who works less than 25 hours per week can be excluded from the plan. Those workers that work less than 25 hours per week are part-time workers and if plan provisions are properly drafted, part-time, temporary, seasonal, and project employees can be excluded from the plans.
In IRC section 401(k) plans eligibility requirements have been lowered from the traditional one year waiting period to less than 1,000 hours of service during 12 ...

Solution provided by:
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
  • "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
  • "Thank you kindly sir. "
  • "Excellent and well explained. --Thank you kindly. "
  • "Awesome notes. I appreciate you."
  • "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution

Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking


This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)