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ARTICLE · 17 JANUARY 2024

IRS Proposes 401(k) Plan Regulations Implementing Long-Term Part-Time Employee Eligibility Requirements

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The day after Thanksgiving, while many of us were fortunate enough to be reaching for leftover pie, the IRS released proposed regulations implementing the requirement that 401(k) plan sponsors...

United StatesEmployment and HR
Jennifer Rigterink
Jennifer Rigterink
Jesse T. Foley
Jesse T. Foley
Steven D. Weinstein
Steven D. Weinstein
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The day after Thanksgiving, while many of us were fortunate enough to be reaching for leftover pie, the IRS released proposed regulations implementing the requirement that 401(k) plan sponsors permit "long-term part-time employees" to make elective contributions to a 401(k) plan. These proposed regulations arrive just one month before the statutory requirements are set to take effect in 2024—meaning that plan sponsors need to quickly get familiar with the proposed rules. This is especially key as the proposed regulations, which would apply for plan years starting on or after January 1, 2024, do not seem to permit good-faith reliance on the statute instead of the proposed rules.

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