SECURE Act Archives - HFM Investment Advisors, LLC

SECURE Act Update: Will Your 401(k) Plan Be Compliant in 2024?

401(k), Secure Act

Here are the SECURE Act provisions New Jersey businesses need to be aware of for next year. SECURE Act Provisions Required for 2024 Luckily, the required changes for 2024 are minimal. Long-term, Part-time Employees As part of SECURE 1.0, there is an important provision about long-term, part-time employees and retirement plan eligibility. In short, effective January 1, 2024, 401(k) plans must allow employees who have worked 500 hours or more in the past three consecutive 12-month periods to contribute elective deferrals to the plan. Changes for High Earning Pre-Retirees (DELAYED FOR 2 YEARS) Employees looking to maximize their retirement savings with…

Long-Term Part-Time Employees Get a Boost from the SECURE Act in 2024 and Beyond

401(k)

For part-time workers, saving for retirement can be a challenge. Many part-time employees are often excluded from 401(k) plans because they often don’t meet the plan’s eligibility requirements. This includes many students, parents and individuals with multiple part-time jobs. However, new legislation that goes into effect on January 1, 2024, is about to change that. Long-Term, Part-Time Eligibility Rules for 2024 Effective on January 1, 401(k) plans must allow employees who have worked more than 500 hours of service in three consecutive 12-month periods to contribute elective deferrals to the plan. Let’s look at an example. Example 1 Alex was…