Voices: From 401(k)s to stretch IRAs, what the Secure Act means for clients
January 1, 2020 by Dan Collins
The recently passed Secure Act is groundbreaking retirement legislation — just like its predecessors, the 1974 ERISA (the bedrock law of employee benefit plans) and the 2006 Pension Protection Act. It will substantially alter the landscape for employer-sponsored retirement plans and individual retirement savers. So, what does this mean for plan sponsors, participants, and clients?
Long-term part-time employees to participate in their employer’s retirement plan
Employers will be required to offer 401(k) eligibility to these employees once they have completed either one full year of service with more than 1,000 hours worked or three consecutive years of service with at least 500 hours worked per year. Under previous rules, part-time workers were often excluded from participating in their employer’s 401(k) plans.