Top ForumsROBS 401K Business Financing, ROBS 401K Business FinancingJune 19, 2021 at 7:37 pm
The SECURE Act requires that part-time employees be allowed to participate in salary deferrals under their employer’s 401(k) plan if they complete three consecutive 12-month periods, each with at least 500 hours of service, starting in 2021. My understanding is that the clock starts in 2021, i.e. such employees would not become eligible until 2024 and this only applies to elective deferrals…employers are not required to match contributions. Two questions:
1) My ROBS 401k plan was set up with the old 1000-hour minimum. What do I need to do to modify my plan documents to comply?
2) I have a Safe Harbor plan. Does that mean that I would also need to match any part-time employee contributions to remain a Safe Harbor plan?
Top ForumsSolo 401k, Solo 401k ContributionsJune 20, 2021 at 7:27 pm
1) The amendment deadline regarding the part time provision you refer to is 12/31/2022 and as with all required plan updates and amendments they will be provided automatically as part of our services.
2) If eligible employees (whether under the part time provision or otherwise) elect to make contributions, they will be entitled to Safe Harbor matching contributions.
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