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Posted by studiocenter on Feb 14, 2014

Boomerang Employees: Rehires and Retirement Plans

A boomerang employee (as we will use that name in this article) is, quite simply, one who leaves and then comes back to work…a rehire. As is so often the case, the retirement plan rules related to rehires are quite different than those that apply to other areas of employment and benefits. Whether rehiring a former employee is a rare occurrence or part of your regular course of business, it is important to understand how these rules work.

  • First Things First
  • Leave of Absence
  • Inconsistent Work Schedule
  • Transfers
  • Rules of the Road
  • Rule of Parity
  • Breaks in Service
  • One-Year Holdout Rule
  • Putting the Rules into Play
  • Eligibility
  • Vesting
  • Conclusion

This newsletter is intended to provide general information on matters of interest in the area of qualified retirement plans and is distributed with the understanding that the publisher and distributor are not rendering legal, tax or other professional advice. Readers should not act or rely on any information in this newsletter without first seeking the advice of an independent tax advisor such as an attorney or CPA.

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