As a plan sponsor, you’re
required to ensure all eligible employees can participate in the plan.
The SECURE (Setting Every
Community Up for Retirement Enhancement) Act recently broadened 401(k) plan
eligibility requirements to include long-term part-time employees for plan
years beginning January 1, 2021. Employees who are 21 and older who work at
least 500 hours in three consecutive 12-month periods can participate in the
plan.
We can help ensure your
records are accurate for the first employees to benefit from this change in
2024. All you have to do, if you’re not doing so already, is make sure to
submit payroll information, including hours, for all employees regardless of
how many hours you expect them to work. With this information, we’ll track when
they’re eligible to participate in the plan under the new rules.