The SECURE Act, which stands for “Setting Every Community Up for Retirement Enhancement” Act, was signed into law at the end of 2019. The Act takes small but impactful steps towards addressing the country’s retirement crisis by incentivizing small business owners to sponsor retirement plans for their employees.

Our four-part series will cover four significant upgrades made by the Act that you should consider.

Significant Upgrade #3: Greater inclusion for part-time employees

Many small businesses are staffed by part-time personnel, who up until now had been largely excluded from participating in their employer’s retirement benefits. Previously, these employees were required to log 1000 hours per year in order to qualify for their company’s sponsored retirement plan. Beginning in 2021, a part-time worker will be allowed to participate, provided they have worked 500 hours annually for three consecutive years. Although it can seem like an additional cost to add more individuals to a retirement plan, the law does not require an employer to offer the same 401(k) benefits to a part-time employee as it would to a full-time worker. For example, an owner can choose to make matching contributions for its full-time employees, but not offer the same to its part-time staff. 

We Are Here to Help
You have worked hard to build a prosperous business for you and your employees. We are here to help develop a plan to ensure that your business thrives and takes advantage of the new aspects of the SECURE Act. At Marvel Law, we are here to help serve you with purpose.  Click here to email us or call us at 309-807-2885 for your FREE 15-minute consultation.