Long-Term, Part-Time (LTPT) workers often have a difficult time adequately preparing for retirement, especially because they have reduced access to employer-sponsored retirement plans. This is changing in the new year, because thanks to the Secure 2.0 Act LTPT workers will have expanded access to workplace retirement plans.

Beginning in 2025, LTPT employees who have worked at least 500 hours for two consecutive years will be eligible to participate in a workplace retirement plan. Until this year, the IRS required 500 hours for three consecutive years. Also new this year is that the provision extends to 403(b) plans in addition to 401(k) plans. 

If you’re an advisor, click here to learn more about working with your plan sponsor to identify LTPT-eligible employees and add them to the retirement plan, so you can provide the best possible participant experience.