Under the SECURE Act and the SECURE 2.0 Act, employers must provide long-term, part-time employees the opportunity to make elective deferrals under their 401(k) plans and, beginning in 2025, their 403(b) plans. When this occurs, certain special rules apply to such employees that impact whether they must be included in annual nondiscrimination testing or receive required top-heavy vesting and benefits. As a result, it is important for employers to understand these requirements, as they may impact how annual testing is performed and the results.
This Is Not a Test! IRS Confirms Long-Term, Part-Time Employees Excludible From Certain Nondiscrimination Testing
Posted In Employee Benefits, Retirement Plans
Sarah L. EngleSarah Engle focuses her practice on employee benefits matters. She counsels clients regarding a variety of issues, including the design, drafting and operation of tax-qualified pension and profit sharing plans, health and welfare arrangements, and deferred compensation plans. Sarah has experience advising clients on employee benefits design, implementation and transition matters arising in connection with corporate mergers and acquisitions. Read Sarah Engle's full bio.
Brian TiemannBrian J. Tiemann counsels public and private companies on a broad range of employee benefit matters, including matters related to pension plans, 401(k) plans and executive and incentive compensation. He advises plan fiduciaries with respect to their fiduciary duties, investment policies and alternative investments. He also advises multinational clients on global employee benefits matters, particularly with respect to global incentive compensation plans. Brian has extensive experience negotiating investment management agreements and service provider agreements. Read Brian Tiemann's full bio.
Haley DowHaley M. Dow focuses her practice on employee benefits and executive compensation matters. Read Haley M. Dow's full bio.
Scott KenkelScott Kenkel focuses his practice on employee benefits and executive compensation matters. He has experience assisting clients with regulatory compliance matters related to tax-qualified retirement plans and executive compensation arrangements. He also regularly works with clients on benefits and compensation issues in connection with corporate transactions. Read Scott Kenkel's full bio.
Related Posts
- New Rules Make Tracking Long-Term, Part-Time Employee Service a Full-Time Job
- When It Comes to Vesting, IRS Says Once a Long-Term, Part-Time Employee, Always a Long-Term, Part-Time Employee
- IRS Confirms Same Hours-Counting Rules Still Add Up for Long-Term, Part-Time Employees
- Under Long-Term, Part-Time Employee Rules, Some Things Change, and Some Things Stay the Same
- A Long-Term, Part-Time Employee or a Former Long-Term, Part-Time Employee, That Is the Question
BLOG EDITORS
STAY CONNECTED
TOPICS
ARCHIVES
RECENT POSTS
- Virtual Care Policy Update: What to Expect in Lame Duck
- Unpacking the Over-the-Counter Contraception Proposed Rule
- IRS Releases Regulatory Notices Related to Health Plan Coverage of Contraceptives
- IRS Issues New Long-Term, Part-Time Employee Guidance Under the SECURE 2.0 Act for 403(b) Plans
- Government Announces 2025 Employee Benefit Plan Limits
