We made it to 2025, and let’s start with “ELIGIBILITY.”
Usually, the new year is also the entry date for newly eligible employees. The DOL’s max for Eligibility is one year of service and 21 years of age. Hopefully, no one forgot about this, but this is a reminder just in case. The other part of reaching the eligibility age and service time is the “Entrance Date.” The plan’s Summary Plan Description will contain these details.
The other employees we shouldn’t forget are those who have been with you for a while but didn’t elect to join the 401K plan when they were first able to. They can join the plan, and some might even think they were automatically enrolled but weren’t. The automatic enrollment must be added to the plan. Either way, it’s a good practice to inform employees about enrollment.
If you’d like to talk about your plan possibilities, schedule some time on my calendar link, Calendly – Ken Gibbons Financial Engineering LLC or call me at 908-307-8511
As always, seek the advice of your retirement plan professionals before implementing any method on your own.
By: Kenneth F. Gibbons, CPFA & CPA
401K Review it & Renew it!