Broadened LTPT Worker Eligibility Rules
Beginning in 2026, retirement plan access for LTPT employees significantly expands:
• Service requirements drop from three years to two for employees who work at least 500 hours a year.
Act Now for a Smooth Transition
Now is the time to begin planning, communicating and coordinating operationally for these 2026 changes. Our employee benefit plan pros stand ready to help you navigate SECURE 2.0 with clarity and confidence
• Coverage in 2026 expands from 401( k) plans to also include certain ERISA‐covered 403( b) plans.
Employers will need to ensure tracking systems are set to capture LTPT worker hours and be prepared to accommodate elective deferrals for both 401( k) and ERISA-covered 403( b) plans.
Looking Beyond 2026
Preparation for 2027 IRS Catch‐Up Contribution Regulations
About the Author
JANICE FORTIN, CPA
PRINCIPAL, DOEREN MAYHEW ASSURANCE PRINCIPAL, DOEREN MAYHEW ADVISORS, LLC fortin @ doeren. com
Janice brings over 30 years of experience to her role as a leader in the firm’ s Employee Benefit Plan Group, where she provides audit, tax and administration consulting to guide clients through complex regulatory requirements they face as plan sponsors.
By year-end 2026, employers should be prepared for clarifications going into effect in 2027 as part of IRS final regulations on Roth catch‐ups:
• Wage aggregation rules( understanding how the IRS defines and aggregates compensation that triggers mandatory catch-ups).
• Guidance on handling compliance corrections( updating your procedures for fixing errors).
• Rules for deemed Roth elections( navigating employee elections or lack thereof).
Deadline Extension for Individual Retirement Accounts( IRAs), Simplified Employee Pension( SEP)/ Savings Incentive Match Plan for Employees( SIMPLE) Plans
The IRS has extended the deadline to amend IRAs, SEP and SIMPLE plans to at least Dec. 31, 2027, with the possibility of additional extensions.
Deadline Extensions for Governmental and Collectively Bargained Plans( CBPs)
Employers have until Dec. 31, 2028, to implement required amendments to CBPs and until Dec. 31, 2029, for governmental plans.
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