Offering a retirement plan program to your employee’s is essential to your overall benefits program.
For restaurants there are some unique issues that you face due to typical high turnover, younger age demographic, lower wages and part-time status. It was pretty standard to be able to exclude these employee’s if they worked less than one year and/or 1000 hours. With the SECURE Act now in full motion it is important that you are aware of your responsibilities as a plan sponsor and how the long term part-time 401(k) rules under the SECURE ACT may impact your plan and making sure you have the right partners in place to assist you with these new rules.
Keep in mind these new provisions were created to provide a more universal retirement savings opportunity for all through an employer sponsored 401(k) plan. This is an especially positive change for younger part-time employees who would like to take advantage of the saving and the compound effect of saving early in their working career.
I you have any questions or concerns regarding long term part-time 401(k) rules, consult with your Henry+Horne advisor.
Provided as information only and should not be considered investment, tax or legal advice or a recommendation to buy or sell any type of investments. M. S. Howells & Co. does not offer tax or legal advice. Please consult with your tax or legal advisor regarding your situation.