Select Part-Time Employees Must Be Allowed to Participate in Company 401(k) Plans
Prior to the SECURE Act, a plan could exclude employees who work less than 1,000 hours during a designated 12-month period. The SECURE Act introduced the concept of “long-term part-time employees.” 2024 will be the first year in which 401(k) plans must allow long-term part-time employees to make elective deferrals.
Importantly, plans are NOT required to provide any employer contributions (including, for example, safe harbor contributions or top-heavy contributions) for long-term part-time employees.
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