Ask Reggi Your Question Now
Can I offer a 401(k) plan to my employees in New Hampshire? What are the requirements?
Offering a 401(k) Plan to Employees in New Hampshire
If you are considering offering a 401(k) plan to your employees in New Hampshire, there are certain requirements you must meet.
Eligibility Requirements
According to the New Hampshire Retirement System, all employees who are at least 21 years old and have worked for the employer for at least one year must be eligible to participate in the plan [2.1].
Contribution Limits
The contribution limits for 401(k) plans are set by the Internal Revenue Service (IRS). For 2021, the contribution limit for employees is $19,500, and the catch-up contribution limit for employees who are 50 years old or older is $6,500 [2.1].
Fiduciary Responsibilities
As the plan sponsor, you have fiduciary responsibilities to your employees. This means that you must act in the best interests of your employees when making decisions about the plan. You must also ensure that the plan complies with all applicable laws and regulations [2.1].
Conclusion
To offer a 401(k) plan to your employees in New Hampshire, you must meet eligibility requirements, contribution limits, and fiduciary responsibilities. It is important to consult with a financial advisor or legal professional to ensure that your plan complies with all applicable laws and regulations.
[2.1]: NHRS 100-A:36-a
Source(s):
Jurisdiction
New Hampshire