Many practices employ one or more hygienists, assistants, or even associates on a part-time basis. Previously, you could exclude those part-timers from participation in your retirement plan, including the ability to make 401(k) salary deferral contributions, unless they worked at least 1,000 hours a year.
The SECURE Act changed this for long-term, part-time employees, allowing them to make 401(k) salary deferrals beginning in 2024. Long-term part-timers include staffers that are at least age 21, who’ve worked at least 500 hours in three consecutive years beginning with 2021 (two consecutive years beginning with 2025), and are otherwise eligible to participate. If your plan excludes a certain class of employees, such as associate doctors, these employees do not have to be included. While your plan must allow those employees to make 401(k) salary deferrals, you are not required to make practice contributions on their behalf.
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