63. Vesting break in service - one year holdout
Publication 6165 — Defined Benefit Listing of Required Modifications and Information Package (LRM) · 2026-10-03 edition · updated 2026-10-04 · United States
Statement of Requirement: Code §I RC 411(a)(6)(B)
Document Provision: _____
Sample Plan Language:
In the case of any participant who has incurred a 1-year break in service, years of service before such break will not be taken into account until the participant has completed a year of service after such break in service.
(Note to reviewer: A fully insured plan that satisfies the requirements of Code §I RC 411(b)
(1)(F) may use the break in service rule of Code §I RC 411(a)(6)(C) and disregard years of
service after 5 consecutive 1-year breaks in service for purposes of determining the
participant’s nonforfeitable percentage in his or her accrued benefit derived from
employer contributions that accrued before such breaks in service. However, the
participant’s years of service before the breaks in service must be counted in vesting the
postbreak accrued benefit unless the plan uses the rule of parity and the pre-break years
of service for nonvested participants could be disregarded pursuant to such rule. See LRM
#64.)
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