Customization Option: Participation Eligibility

Setting participation eligibility parameters for your 401k plan is a way to exclude certain classes of employees, such as part-time or temporary workers and union members, from participating in your company plan.

401k Census's IRS-approved prototype 401k plan allows for the following participation eligibility requirements:

• Length-of-Service Requirement
  Establish anything from "none" to "1 year of service"
• Age Requirement
  Establish anything from "none" to "21 years of age"
• Union Membership
  Can choose to exclude employees whose service is governed by a collective bargaining agreement

Free help is available with understanding your 401k plan customization options and the effects certain choices typically have on a 401k plan.

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