less than 20/hr 410(b) test

[ATM]

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?

[Luke Bailey]

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.

[ATM]

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

[Luke Bailey]

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).