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Can I offer a 401(k) plan to my employees in Indiana? What are the requirements?
Requirements for Offering a 401(k) Plan in Indiana
If you are an employer in Indiana, you can offer a 401(k) plan to your employees. However, there are certain requirements that you must meet to offer a 401(k) plan.
According to the Internal Revenue Service (IRS), an employee must be allowed to participate in a qualified retirement plan if he or she meets both of the following requirements:
- Has reached age 21
- Has at least 1 year of service [3]
Additionally, the plan must meet certain vesting requirements. For example, matching contributions must vest at least as rapidly as a 6-year graded vesting schedule. A safe harbor and SIMPLE 401(k) plan must provide for 100% vesting in employer and employee contributions at all times. [3]
Conclusion
In summary, as an employer in Indiana, you can offer a 401(k) plan to your employees if you meet the participation and vesting requirements set by the IRS.
Source(s):
Jurisdiction
Indiana