ATM Posted August 15, 2019 Report Share Posted August 15, 2019 If a plan excludes those who work less than 20 hours/week as ineligible to make deferrals and the match requirement is a year of service (no hours), would those who work less than 20 hours/week be excluded from the 410(B) test for the matching even if they have more than a year of service? Link to comment Share on other sites More sharing options...
Luke Bailey Posted August 16, 2019 Report Share Posted August 16, 2019 ATM, I think your premise is incorrect. The plan cannot contain a service-based exclusion other than 1,000 hours/year of service. A plan may have immediate eligibility for individuals classified as full-time and a one-year wait for non-full-time. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
ATM Posted August 20, 2019 Author Report Share Posted August 20, 2019 Hi Luke, I'm not sure what you are referring to as it the less than 20 hour a week exclusion is an option in the pre-approved 403(b) plan documents Link to comment Share on other sites More sharing options...
Luke Bailey Posted August 20, 2019 Report Share Posted August 20, 2019 ATM, sorry. You didn't identify as 403(b). I was assuming 401(a)/(k). The "fewer than 20 hours per week" rule is specifically for 403(b) universal availability of elective deferrals. See Treas. reg. 1.403(b)-5(b)(4). Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
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