Am I entitled to a make-up contribution to a profit sharing or money purchase plan?

Yes, if you were entitled to a contribution had you continued to work, then you will receive one upon your return to employment. The plan calculates the make-up contribution using the same formula used for other plan participants with the theoretical compensation you would have received had you continued to work. Your employer will make the contribution to the plan on your behalf by the latter of 90 days following your return to work or when the company would normally make the contribution for the affected period. You do not have to take any action to cause the contribution to occur.

For example: Mary is called up for active duty for 12 months. While she was deployed, her employer contributed 10 percent of compensation to the plan for each eligible employee. Following Mary’s return to work, the company estimates her missed compensation at $48,000 and will make a profit sharing contribution to her account of $4,800 ($48,000 x 10 percent).