Secure Acts
The SECURE Act and SECURE 2.0 Act make important changes to retirement plans that impact the NC Supplemental Retirement Plans (NC 401(k) Plan and NC 457 Plan).
The SECURE Act and SECURE 2.0 Act expanded 401(k) plan eligibility for certain long-term, part-time (LTPT) employees. A plan sponsor cannot require "as a condition of participation" in a 401(k) plan that an employee work more than 500 hours for each of three consecutive 12-month periods on or after January 1, 2021 (for the SECURE Act) or two consecutive 12-month periods on or after January 1, 2023 (for the SECURE 2.0 Act). A LTPT employee must be at least 21 years old prior to the end of the applicable two-year or three-year waiting period. Therefore, LTPT employees become eligible to participate in 401(k) plans as early as January 1, 2024, under the SECURE Act and January 1, 2025, under the SECURE 2.0 Act.