![]() ![]() ![]() ![]() Plans can be more generous and allow entry into the plan sooner. The first year any long-term, part-time employee will be required to be eligible for the 401(k) Plan is 2024. For eligibility purposes, only those years after 2021 are counted. They also need to meet any age requirements (generally age 21 for participation and age 18 for vesting). However, the Setting Every Community Up for Retirement Enhancement (SECURE) Act, in its effort to expand access to employer retirement plans, introduced the concept of a "long-term, part-time employee." Starting in 2021, plans will need to consider these employees for eligibility, vesting, and company contribution purposes.Ī "long-term, part-time employee" is any employee who in each of the last three consecutive years (long term) worked at least 500 but less than 999 hours (part time). Historically, 401(k) plans could exclude individuals who worked less than 1,000 hours in the plan year.
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