"We have just taken over a 401(k) plan with a safe harbor match. The plan's eligibility has no age or service requirement. Union employees as well as part time employees as a class are excluded.. In previous years, the plan has failed the minimum coverage tests. Now, for 2025, the client wants to change the eligibility to 3 months and 250 hours of service beginning 10/01/2025. Anyone hired on or after that date would be subject to the new eligibility. They are looking for ways this late in the year to avoid failing the minimum coverage test for 2025. I don't think the above is feasible and would help. Any insights would be appreciated."

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"We are in the process of taking over a 401(k) SH Plan. The adoption agreement from the current TPA is showing this under eligibility exclusions:

'Part-time Employee Terms of Eligibility under the SECURE Act: a) Part Time employees must complete either I,000 hours within their 1st year OR b) 500 hours in each of 3 consecutive years.'

"Has anyone else come across this? It's rather concerning."