IRS Releases 403(b) Long-Term Part-Time Guidance

The IRS has issued Notice 2024-73, providing question-and-answer guidance on long-term, part-time employees in 403(b) plans. Guidance is applicable for plan years beginning after December 31, 2024.

The IRS anticipates issuing proposed regulations with respect to section 125 of SECURE 2.0, and also announces that a yet to be released final regulation related to long-term, part-time employees under section 401(k) plans will apply no earlier than to plan years beginning on or after January 1, 2026. A proposed regulation was issued in 2023.

The IRS is soliciting comments on the content of this notice.