Business Retirement Accounts » Single Participant 401(k) Plans Eligibility
An employer may set employee participation requirements that are less restrictive than those stated by the law, but may not set requirements that are more restrictive. Eligibility requirements are as follows: | » | Defined by the plan document | | » | Can be based on age: Up to age 21 before they may become participants of the plan | | » | Length of Service: Plan may require up to 2 year of service before allowing employees to make elective contributions. A year of service cannot be more than 1,000 hours. | | » | Class of service: Employees may be restricted as defined in the plan document. | |