Does Advisors 401(k) let us exclude part-time workers from receiving matching contributions?

To exclude part-timers from receiving matching contributions simply exclude them from the plan, which is accomplished by setting appropriate length of service and other participation requirements for the plan. If you want part-timers to be able to participate in the plan but not receive matching contributions, you're better off not offering matching contributions but instead offering some type of bonus to the groups of employees you seek to reward. 401k contributions are a percentage of pay, including bonuses, so paying bonuses will allow employees to contribute more to their 401k accounts themselves (in lieu of your making matching contributions for them).

Please call us or consult your tax advisor for details and further options. More.

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