Question

Which employees can be disqualified from enrolling into a 401(k)? A. Part-time employees B. Full-time employees earning a $1,000,000 annual salary plus bonuses and incentives C. Full-time employees earning $65,000 to $85,000 D. Full-time employees earning annual salaries between $65,000 to $125,000

Answer 1

The 401k plans are allowed to exclude employees who work less than 1000 hours per year which is about 19 hours per week over a full year of employment and the GAO found that 20 of the 80 plans surveyed require employees to work a certain number of hours to participate in the 401k plan.