How plan eligibility can help achieve recruitment goals

Description

Abstract: In a tight labor market, employees may feel more confident about finding another job if they’re unhappy with the one they have. For plan sponsors, 401(k) plan participation eligibility requirements take on greater significance in this market. In general, employers can require a new hire to wait a year before being eligible to participate in a qualified retirement plan, in addition to requiring that the employee be 21 years old. This article discusses the pros and cons of giving new employees the opportunity to enroll in the plan immediately.