Plan Eligibility

Extra! Extra! Stay up to date on the latest news about the DWC team.

The retirement plan landscape is ever evolving. We distill the details so you don’t have to!

We’ve corralled the best news from inside the beltway – not only regulations, but also new legislation from Congress as well as relevant guidance from the IRS and Department of Labor. In true DWC fashion, we don’t just repackage a recitation of the rules, we provide our thoughts and commentary about what those rules mean to you.

We know cash balance rules can be intimidating! Settle into the Cash Balance Corner and let us break it down for you.

Have 401(k) questions? We have 401(k) answers! We bring you answers to many of the common questions we receive.

A behind-the-scenes look not at how the sausage is made, but why we make it the way we do. (Hint: It’s all about the best interests of the client.)

We’re all about learning from other people’s (alleged) mistakes. We might not be attorneys, but we still follow benefits-related cases and summarize lessons and key take-aways. No hourly fee needed for these insights!

A deeper dive into retirement plan topics doesn’t have to be headache-inducing. Our Pension Primer articles provide depth of information without depth of jargon!

10/22/24

DWC | 10/22/2024

At Your Service: Calculating Length of Service

One of the most fundamental requirements in managing a qualified retirement plan is counting an employee’s length of service. It is the basis for determining such items as plan eligibility, ...

DWC | 10/22/2024

Employee or Independent Contractor: a Rose by Any Other Name

USA Today recently ran an article describing how many companies are using alternative work arrangements to adapt to an ever-changing business environment. Some may rely on more part-time workers, ...

DWC | 10/22/2024

401(k) or 403(b) : Tomāto, Tomäto?

The last few years have brought significant changes to the 403(b) world. The IRS' first update to the regulations in more than 40 years directly imposed new plan document and oversight requirements, ...

DWC | 06/21/2024

Consequences of Using an Off-Calendar Plan Year

Just like a company, a retirement plan is required to operate on a set 12-month period. This is often referred to as the tax year or fiscal year for a business and a plan year for a retirement plan. ...

DWC | 06/18/2024

Rehires and Retirement Plans: It’s Déjà Vu All Over Again

Sooner or later, most companies will have an employee who leaves and comes back again. As is so often the case, the retirement plan rules related to rehires are quite different than those that apply ...

Adam C. Pozek | 11/27/2023

It’s About Time – Long Term, Part Time Employees – Part 2

Adam C. Pozek | 11/27/2023

It’s About Time – Long Term, Part Time Employees – Part 1

DWC | 01/28/2021

Anticipating a New Hire - You Might Change Your Mind

Sponsoring a retirement plan can provide significant benefits to a company (and its participants). But with great benefits comes great responsibility…responsibility to follow all of the various ...

DWC | 01/12/2021

Which Employees Do I Have to Report on my Year-End Census Report?

Facts As for so many companies, the end of one year and the start of the next are especially busy times. And, without fail, we’ve already received the request for our annual census data from our ...

DWC | 11/3/2020

Does Counting Hours of Service for Plan Eligibility Have to be a Nightmare?

Facts We’ve been following along with the last few Questions of the Week and think we’re pretty comfortable with how we want to set up eligibility for our 401(k) plan. We’re definitely looking to ...

DWC | 10/27/2020

What's the Simplest Way to Set Up a One Year Eligibility Waiting Period for our 401(k)?

Facts We are looking to set up a 401(k) plan for our company. Our workforce includes both hourly and salaried employees as well as full-time, part-time, and seasonal workers. For now, we really want ...

DWC | 10/20/2020

How Can We Tweak Our Plan's Eligibility Requirements to Make Administration Easier?

Facts We’ve sponsored our 401(k) plan for several years now, and it’s been very well-received by our employees. Believe it or not, though, one of the biggest challenges we have had is around when ...

DWC | 01/28/2020

Am I Now Required to Include Part-Time Employees in my 401(k) Plan?

Facts As the owner of a beachside hotel, I sponsor a calendar year 401(k) plan for my employees. In the summer we hire many part-time employees to assist with the uptick in guests and activities. Our ...

DWC | 11/19/2019

Are Rehires Immediately Eligible for our 401(k) Plan?

Facts We just rehired an employee that used to work for us but who terminated almost 4 years ago. She was eligible for our 401(k) plan during her previous tenure but took a distribution of her ...

DWC | 10/29/2019

Is It Possible to Split Eligibility to Allow for Deferrals but to Postpone Safe Harbor Contributions?

Facts We allow new employees to join our 401(k) plan on the first of the month after they are hired. They become eligible to make deferrals and also receive the company safe harbor contribution at ...

DWC | 04/16/2019

Who are Leased Employees & Are They Eligible for my 401(k) Plan?

Facts I own a small manufacturing company that specializes in office supplies, and I sponsor a 401(k) plan for my employees. One of my former employees, Tim Halpert, worked full-time with me for the ...

DWC | 03/19/2019

What Common Compliance Issues Should We Be Watching For?

Facts Our company sponsors a 401(k) plan, and we want to make sure we do everything correctly. We have a great staff and have put processes in place to help ensure we operate the plan in a compliant ...

DWC | 11/27/2018

Are RMDs Required for a Retiree Turned Independent Contractor?

This QOTW has been updated to reflect changes made by the SECURE Act, which was signed into law on December 20, 2019. Participants who were born on or before July 1, 1949, are required to start ...

DWC | 10/26/2018

Retirement Plan Design

Introduction Whether you are starting a new plan or reviewing your current plan design, the key to success is access to knowledge for selecting the best plan.

DWC | 10/9/2018

Can We Change our 401(k) Plan Eligibility Requirements to Exclude Employees Who Have Already Joined?

Facts Our company has quite a few employees who only work a few hours each week. When we setup the 401(k) plan, we wanted to allow all our employees to save, so we set the eligibility requirement at ...

DWC | 07/17/2018

An Employee Joined the Plan Too Soon: No Harm, No Foul or Failure In Need of a Fix?

Facts In order to be eligible for our company’s 401(k) plan, employees must have worked for us for at least a year and be a minimum of 21 years old. They can join the plan on the next January 1st or ...

DWC | 06/26/2018

What Compensation Should We Use to Calculate Company Contributions to our 401(k) Plan?

Facts Our company has a safe harbor 401(k) plan. In addition to employees making deferrals, we make a company contribution equal to 3% of each person’s compensation. We deposit both types of ...

DWC | 06/5/2018

Can We Exclude Seasonal Employees From Our 401(k) Plan?

Facts Our company’s workload fluctuates throughout the year with big spikes during the summer. As a result, we often hire seasonal workers who help us out during the busy times, but do not work ...

DWC | 02/27/2018

Can We Exclude Seasonal Employees From Our 401(k) Plan?

Facts Our company has a retail store that sells items like patio furniture, swimming pool supplies, and equipment. We also have a department that cleans and services swimming pools. The service ...

DWC | 10/3/2017

Who Must Receive Retirement Plan Blackout Notices?

Facts We have selected a new recordkeeper for our 401(k) plan. We are told that there will be a period of eight business days when our participants are not able to log in and manage their accounts. ...

DWC | 07/5/2017