Saving for retirement as a part-time worker has become more accessible, thanks to provisions in the SECURE 2.0 Act. This legislation introduces several measures aimed at enhancing retirement savings opportunities for part-time employees, freelancers, and gig workers. U.S. News Money+1MarketWatch+1
Key Takeaways:
- Easier 401(k) Access: Starting in 2025, long-term, part-time workers who have completed at least 500 hours of service each year for two consecutive years will be eligible to participate in their employer’s 401(k) plan, reducing the previous three-year requirement. Investopedia+2Wikipedia+2U.S. News Money+2
- Saver’s Match Introduction: Replacing the saver’s credit, the saver’s match will provide a federal matching contribution of up to $1,000 for individuals (or $2,000 for married couples) who contribute to a retirement account, beginning in 2027. U.S. News Money
- Portable Retirement Accounts: The new rules facilitate the portability of retirement accounts, allowing workers to move their retirement savings when changing jobs, which is particularly beneficial for part-time workers who may switch employers more frequently. U.S. News Money
- Automatic Enrollment: Most major companies will be required to automatically enroll eligible employees into retirement plans, starting after December 31, 2024, with contribution rates beginning at 3% and increasing annually. U.S. News Money
These changes aim to provide part-time workers with greater opportunities and incentives to save for retirement, aligning their options more closely with those available to full-time employees.