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Can I offer a 401(k) plan to my employees in Massachusetts? What are the requirements?

Based on the information provided in the context, here is your response:

Offering a 401(k) Plan to Employees in Massachusetts

Yes, you can offer a 401(k) plan to your employees in Massachusetts. However, there are certain requirements that you need to meet.

According to the U.S. Department of Labor [1], if your benefit is lost, stolen, or being mishandled, the Department of Labor can assist you with your pension, 401(k), profit sharing, or other retirement issue.

The Internal Revenue Service [2] states that 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

Additionally, the U.S. Department of Labor [3] mentions that once you have decided on the type of plan for your company, you have flexibility in choosing some of the plan’s features, such as which employees can contribute.

Therefore, to offer a 401(k) plan to your employees in Massachusetts, you need to ensure that you meet the above requirements and have the necessary flexibility in choosing the plan’s features.

I hope this helps! Let me know if you have any further questions.

Source(s):
Jurisdiction

Massachusetts