Your plan’s eligibility provision is a big thing because it serves as a gatekeeper for which employees you want to cover based on your demographics, it’s like a velvet rope at the local club.
The problem is that sometimes your provision isn’t followed correctly or it wasn’t drafted correctly. Either way, you have a huge compliance headache. You might owe some contributions or you might have a compliance testing problem as well. Regardless, make sure that the eligibility provision meets your needs.
