Retirement plan contribution while on FMLA but no RTW

I have no time to research this one today and I'm hoping someone out there knows the down and dirty quick answer....

1. Employee goes on FMLA leave in November. She is scheduled to return in January.
2. Employee would normally qualify for profit sharing contribution b/c she is in service on 12/31. We realize you can't hold FMLA against her so we treat her like being in service on 12/31. This assumes she is returning to work...
3. Employee then announces in January that she isn't returning to work after all. We presume she had no intention of returning all along, but how do you prove.

Question: do we give the profit sharing contribution anyway or do we go out on a limb and deem that she resigned earlier. I suspect we need to just suck it up and give her the contribution. I'm just curious how others have handled it. Thanks.


Sign In or Register to comment.