Which methods can be used to calculate eligibility for plans?

The method used to calculate eligibility for retirement plans, such as 401(k) plans, often includes counting hours, using equivalency methods, and applying elapsed time criteria.

Counting hours involves tracking the actual hours worked by an employee, which helps determine if they've met the minimum service requirement to participate in the plan. Equivalency may refer to a method where hours are translated into a standard, where some employees can qualify based on alternative criteria (e.g., total pay can equate to the necessary hours). Elapsed time usually refers to the passage of time since an employee's hire date, indicating their eligibility based on their tenure within the company rather than specific hours worked.

These methods are recognized as valid and compliant with IRS regulations, making them essential in determining employee eligibility for participation in retirement plans like 401(k)s. Other options provided do not encompass the full range of eligibility calculation methods recognized in the regulatory framework, which is why they are not the correct answer.