If Hayley was hired on 7/25/21 and completed her service requirement by the end of her eligibility computation period, is she excludable for the 2022 plan year?

Hayley can indeed be considered excludable for the 2022 plan year based on her completion of the service requirement within the eligibility period. In the context of 401(k) plans, a participant's eligibility is typically determined by both their service requirement and the plan's specific eligibility rules.

When someone is hired, there are often stipulations that define when they can join the plan based on their length of service and other criteria. If Hayley was hired on July 25, 2021, and completed her service requirement by the end of her eligibility computation period, this indicates that she did not meet the plan's requirements to participate for the 2022 plan year.

Excludability in this context means that the plan can choose not to allow a new employee to be eligible until a certain duration has passed, or certain conditions fulfilled. Since her eligibility was not established for the upcoming year, it is perfectly valid to conclude that she is excludable for that year.

Understanding these eligibility rules is crucial for plan administrators, as they set the framework for who can participate in the retirement plan and when, ultimately influencing the benefits for employees based on their hire dates and tenure.