401(k) Plan Sponsors—Do You Need to Start Tracking Hours for Your Part-Time Employees?

At the end of 2019, President Donald Trump signed into law the Setting Every Community Up for Retirement Enhancement (SECURE) Act, which included a number of changes to employer-sponsored retirement plans. One change involved expanding the ability of long-term, part-time employees to make 401(k) deferral contributions. While this change becomes effective in 2024, employers that apply an eligibility service requirement to determine whether employees can contribute to a 401(k) plan must begin tracking hours of service for part-time employees beginning January 1, 2021.