Recent changes in legislation might have impacted your eligibility to participate in your employers 401(k) plan. If you are a part-time employee who has been with your company for two or more years, you may now qualify to participate in your company's 401(k) plan.

Understanding the New Eligibility Rules:

The Pre-2019 Rule (Before the Secure Act) :

• Employers could require employees to complete 1,000 hours of service within a 12-month period to be eligible for participation in a 401(k) plan.

The Rule 2019-2022 (Secure Act Rule 2019):

• Employees aged 21 or older who have completed at least 500 hours of service per year for three consecutive years must be allowed to participate in the elective deferral portion of their company's 401(k) plan.

The Rule 2022 Forward (Secure 2.0 Rule):

• This rule reduces the requirement to two consecutive years of at least 500 hours of service per year for employees aged 21 or older to be eligible for participation in the elective deferral portion of the plan.

Despite these changes, some employers or some plans may not be complying with the new regulations, potentially depriving eligible part-time employers of their right to participate in 401(k) plans. If you have been employed part-time for at least two years and meet the eligibility criteria but have been denied participation in your employer's 401(k) plan, recent changes in company policy or terms of service may impact your ability to take action.