As a reminder, eligibility requirements went into effect for Long-Term, Part-Time (LTPT) employees as of January 1, 2024. However, additional changes that affect who is considered a LTPT employee will be coming for 2025. Please see the chart below to plan ahead and ask us if you have any doubts!
2024 | 2025 | |
---|---|---|
Plan Type | 401(k) only | 401(k) and ERISA 403(b) |
Years of service required* | 3 | 2 |
Disregard years prior to | 2021 | 2021 for 401(k) 2023 for ERISA 403(b) |
*minimum 500 hours/year over consecutive years
This newsletter is intended to provide general information on matters of interest in the area of qualified retirement plans and is distributed with the understanding that the publisher and distributor are not rendering legal, tax or other professional advice. Readers should not act or rely on any information in this newsletter without first seeking the advice of an independent tax advisor such as an attorney or CPA.
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