Lied to about 401K eligibility?

[ReadySteadyG0]

What is the name of your state (only U.S. law)? Georgia

Was told I was not eligible to enroll in a 401k at the beginning of this year because I worked from January 2nd 2013 to January 1st 2014 and that was not "technically" a full calender year. I didn't think too much of it at the time but I decided to look it up on the IRS website recently and there it states that a full calender year is generally defined as 1000 hours of service which I easily completed because I averaged at least 36 hours a week for the year. My question is was my employer correct because it is maybe at their discretion that I complete a full year i.e. Jan 1-Jan 1 or is it by law that you are eligible if you complete 1000 hours of service regardless of what date you started that year. Thanks!

 

[cbg]

I haven't read your plan document, so I can't say. But even if it should prove that you are correct, why do you jump to the conclusion that it is a deliberate lie and not an honest mistake?

(The employer has no incentive whatsoever to prevent you from enrolling in the 401k - they obtain no benefit from having employees not participating. It is, in fact, to their benefit that as many employees participate as possible.)

 

[ecmst12]

Depends what the plan document says.

 

[davew128]

(The employer has no incentive whatsoever to prevent you from enrolling in the 401k - they obtain no benefit from having eligible employees not participating. It is, in fact, to their benefit that as many employees participate as possible.)

Fixed it for you. - former plan administrator

 

[cbg]

Good catch, Dave - thank you.

However, that just proves the point I was making - it would not benefit the employer to tell the employee that he was not eligible when he was.