Many nonprofit organizations offer 403(b) retirement savings plans to their employees. The SECURE 2.0 Act made certain long-term, part-time workers eligible for participation in these tax-advantaged plans. However, the IRS hadn’t clearly explained which plans were affected by the rules, leading to some confusion. New guidance states that only 403(b) plans subject to Title 1 of ERISA must allow long-term, part-time employees to enroll. Student employees and some other part-time workers aren’t eligible. These rules will be effective starting in 2025. For details, see Notice 2024-73: https://bit.ly/3TWWyIt
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