Is Proposed Bill Easing 401k Participation of Workers under Age 21 Focusing on the Wrong Thing?
Of Counsel Michelle Capezza spoke with Fiduciary News about a proposed bill that would make it easier for employers to add employees under the age of 21 to their 401K plans. Michelle discusses what the landscape looks like now and the reasoning behind it.
She says, “Many employers choose not to extend plan eligibility to workers who have not attained the later of age 21 or the required hours of service due to potential high turnover of younger workers, increased plan administrative costs and potential plan testing issues.”
Source