Excluding EE's who work less than 20 hours per week when eligibility requirement is 30 days of service

[Mel_1999]

Can a 401(k) plan with an eligibility service requirement of 30 days of service (elapsed time), exclude employees who work less than 20 hours per week? 

[WCC]

yes, if done correctly. Here is a recent discussion similar to this question:

 

 

[CuseFan]

you must specify the excluded class in the document and you must allow them plan entry if and when they work 1000 hours

[BG5150]

On 4/14/2017 at 0:52 PM, CuseFan said:

you must specify the excluded class in the document and you must allow them plan entry if and when they work 1000 hours

...in an eligibility period.  ;)

[ESOP Guy]

Isn't the point of them being an excluded class is you do NOT have to let them in the plan?

If they work the 1,000 hours in a year they have to be factored in on tests but they still don't have to be allowed in the plan. 

 

The key is you have to find a classification that is something other then people who work 20/hours a week as that is not allowed.  But if you can define them as all janitors, for example, you can exclude them even if they work over 1,000 hours in a plan year.  That will merely hurt testing.