Q. Can substitute teachers participate in 403(b) and/or 457(b) plans?
A. It depends on the plan document. You cannot exclude by class of employee including substitute teachers. However if the plan excludes employees who work less than 20 hours a week (or 1,000 hours per year) and the teacher does not work (or it is anticipated that they will not work) at least 1,000 hours then they are not eligible. Alternatively, if the plan has no exclusions then all employees are eligible regardless of the number of hours worked.
A. It depends on the plan document. You cannot exclude by class of employee including substitute teachers. However if the plan excludes employees who work less than 20 hours a week (or 1,000 hours per year) and the teacher does not work (or it is anticipated that they will not work) at least 1,000 hours then they are not eligible. Alternatively, if the plan has no exclusions then all employees are eligible regardless of the number of hours worked.
Recent Comments
Does the roth requirement for catch-up contributions for people who earned $145,000 apply to 457...
Hi Ed,
I really liked this article and I think you make a lot of sense. And I had no...
I believe there's a misstatement in that last quote - it should refer to governmental and...
Working with several medical providers as clients, I note that the high-end earners tend to push...
Congratulations to NTSAA for landing a good one. Nathan's breadth of experience and...