Understanding the Key Provisions of SECURE 2.0: Long-Term Part-Time Employee Eligibility
Help your clients understand the improved coverage and new eligibility rules for long-term part-time (LTPT) employees under the SECURE 2.0 Act.
Key Points
- Understanding Eligibility Changes: Educate clients on the shift from the three-year rule under SECURE 1.0 to the two-year rule under SECURE 2.0, highlighting the faster access for part-time employees to participate in 401(k) plans.
- Inclusion of 403(b) Plans: Inform clients that ERISA-covered 403(b) plans are now included in the expanded coverage, providing more opportunities for part-time employees to save for retirement.
- Navigating Transitional Rules: Assist clients in managing the transition between the old and new rules, ensuring compliance with both the three-year and two-year eligibility criteria for long-term part-time employees.