On November 24, 2023, the IRS released the long-awaited Proposed Regulations addressing the changes made by the SECURE Act and SECURE 2.0 related to long-term, part-time employees (“LTPTs”) in 401(k) plans. While the IRS uses the name ‘long-term, part-time employees’ in the Proposed Regulations, these rules apply to part-time, seasonal and other types of reduced-hours workers, and could potentially apply to even some full-time employees if a plan uses hours to determine eligibility to participate. The Proposed Regulations would amend Treasury Regulation 1.401(k)-5 to reflect the LTPT rules and would be applicable for plan years that begin on or after January 1, 2024.
More detailed information about the Proposed Regulations is included in the chart linked here.
