11 Feb 2025

It’s Been Such a Long-Time: Addressing Long-term Part-time Employee Issues in Retirement Plans

Beginning in 2024, the SECURE Act rules required employers to allow covered long-term part-time (LTPT) employees to participate in the deferral feature of a 401(k) plan once these employees met applicable age and service thresholds, now requiring just 500 hours of service in an eligibility (and vesting) period. The SECURE 2.0 Act LTPT employee rules (extending coverage to ERISA-governed 403(b) plans and reducing the applicable threshold service period) take effect beginning in 2025. Count hours now!

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