Notice 2024-73: Guidance on long-term, part-time employees in 403(b) retirement plans

Comments requested on or before December 20, 2024

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October 3, 2024

The IRS today issued Notice 2024-73 as guidance addressing long-term, part-time employees in 403(b) retirement plans under the SECURE 2.0 Act, which applies to 403(b) plans beginning in 2025. These plans are similar to 401(k) plans but are generally for employees of charities and public schools.

According to today’s IRS release—IR-2024-257—the notice:

  • Includes a question-and-answer (Q&A) section on the application of the nondiscrimination rules for 403(b) plans with respect to long-term, part-time employees, including application of the rules to permitted exclusions from participation for part-time employees and student employees
  • Informs the public that the Treasury Department and the IRS plan to issue additional guidance with respect to section 125 of the SECURE 2.0 Act, including proposed regulations
  • Announces that the final regulation Treasury and the IRS plan to issue for 401(k) plans on long-term, part-time employees will apply no earlier than to plan years beginning on or after January 1, 2026
  • Requests comments on or before December 20, 2024

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