Careful Drafting for Entry Dates (Posted January 22, 2003) Technical Tip 89: The following question and answer were from the IRS Q&A Session at the 2001 ASPPA Annual Conference: Two plans [Plan 1 and Plan 2] have eligibility requirements of the later of attainment of age 21 and completion of one year of service (i.e., traditional 21/1) and dual entry dates. The dual entry dates are defined for Plan 1 as "next following," and for Plan 2 as "coincident with or next following" attainment of participation requirements. Employee begins work 1/2/00. Is the year of service completed on 1/1/01 such that under Plan 1 the participant would enter 7/1/01 and under Plan 2 he would enter 1/1/01? Or is year of service up on 1/2/00 such that in either case entry 7/1/01? Response: With a hire date of 1/2/00, under Plan 1, he would complete his one year on the following 1/1/ and enter on the next entry date after 1/1/, which would be 7/1/01. Under Plan 2, he would complete his year on 1/1/02 and enter 1/1/02 since that is coincident with the attaining of eligibility. Attention must be paid to the drafting of the plan language to accomplish what is desired. View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.