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New Eligibility and Vesting Rules for Part-Time Employees under the SECURE Act

Posted: January 15, 2021

If you have part-time employees and sponsor a 401(k) plan, the SECURE Act requires your plan to permit part-time employees who complete at least 500 hours of service over three continuous 12-month periods (and satisfy any eligibility age requirement) to make elective deferral contributions. Periods of service before January 1, 2021 are not counted to determine participation eligibility, and the plan does not have to provide other employer contributions to these “long-service, part-time employees.” Click here to read the full alert.