Can You Get 401k Part-Time? (2025)

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• The SECURE Act allows long-term part-time employees to qualify for 401(k) plans.
• To be eligible, part-time employees must work at least 500 hours per year for three consecutive years.
• Employer discretion plays a role in the details of participation, including contribution limits and matching contributions.
• Part-time employees can contribute to their 401(k) once eligible, subject to the IRS contribution limits.
• Employer matching contributions can significantly enhance retirement savings, but not all employers offer this.
• Part-time workers should consider whether their employer offers Roth vs. traditional 401(k) options.
• It’s important to review any fees associated with the 401(k) plan, as they can affect long-term savings.
• Some employers automatically enroll employees in the 401(k), but this may not apply to part-time workers.

When you think about a 401(k) plan, you likely imagine a full-time employee working a typical 40-hour week. But what if you’re working part-time? Can you get 401k part-time? The good news is that recent changes under the SECURE Act have made it easier for part-time workers to qualify for 401(k) plans.

If you’re working part-time, you may now be eligible to participate in your employer’s retirement plan, provided you meet certain requirements. In this post, we will break down what the SECURE Act is, how it affects part-time employees, and what you need to know to determine if you can contribute to a 401(k) plan.

Introduction to the SECURE Act

The SECURE Act (Setting Every Community Up for Retirement Enhancement Act) was signed into law in December 2019. One of its main goals was to improve access to retirement savings for more Americans, including part-time workers.

Before this legislation, many part-time employees were excluded from participating in employer-sponsored 401(k) plans because they did not meet certain eligibility requirements. However, the SECURE Act changed that by allowing long-term part-time employees to join 401(k) plans under specific conditions.

In this post, we will explain how the SECURE Act affects your ability to contribute to a 401(k) if you’re a part-time worker. Specifically, we’ll cover the eligibility criteria, the hours requirement, and how your employer’s plan may impact your participation.

Can You Get 401k Part-Time? The SECURE Act’s Impact

Under the SECURE Act, long-term part-time employees who meet certain conditions are now eligible to participate in their employer’s 401(k) plan. But it’s important to understand that part-time work does not automatically guarantee access to a 401(k) plan. Instead, the SECURE Act sets forth specific requirements that must be met for eligibility.

Understanding “Long-Term Part-Time” Employees

The term “long-term part-time” is a key concept in determining whether you can get 401k part-time. The SECURE Act defines a long-term part-time employee as someone who works at least 500 hours per year for three consecutive years. This means that in order to qualify for a 401(k) under the SECURE Act, you must meet the following criteria:

• Work at least 500 hours per year. To be considered for eligibility, you must work a minimum of 500 hours during each year for three consecutive years.
• Three years in a row. The three-year period is important because the SECURE Act only applies to employees who meet the 500-hour-per-year requirement for three years in a row.

Why Is the 500-Hour Requirement Important?

The 500-hour minimum per year ensures that part-time employees who are making a consistent commitment to their employer are rewarded with the opportunity to save for retirement.

Many part-time employees work less than 500 hours annually, making them ineligible for most benefits, including retirement plans. By setting this standard, the SECURE Act provides a path for part-time employees who put in consistent work over time to gain access to a 401(k).

Employer’s Role in Part-Time 401(k) Eligibility

While the SECURE Act mandates eligibility for long-term part-time workers, the final decision on whether you can get 401k part-time still depends on your employer’s plan.

The SECURE Act requires employers to allow part-time employees who meet the three-year, 500-hour rule to participate in their 401(k) plan, but employers have some discretion regarding the specifics of the plan, including:

• Vesting schedules: Employers may have different vesting schedules, which can affect when you fully own the employer’s contributions to your 401(k) plan.
• Contribution limits: Employers may have rules about how much you can contribute to your 401(k) plan. This may include limits on matching contributions or other aspects of the plan.
• Additional eligibility requirements: Some employers may have additional requirements for part-time workers, such as a minimum number of hours worked per week over a period of time.

While these employer-specific details may vary, the law now ensures that if you meet the minimum requirements, you will have the opportunity to contribute to a 401(k).

Can You Contribute to Your 401(k) as a Part-Time Employee?

Once you meet the requirements and are eligible to participate in your employer’s 401(k) plan, you can generally begin contributing to it. However, keep in mind that you must also consider the contribution limits set by the IRS.

For 2025, the contribution limit for employees under age 50 is $22,500. If you’re age 50 or older, you can contribute an additional $7,500 in catch-up contributions, bringing the total limit to $30,000.

It’s important to remember that if you’re working part-time, your ability to reach the contribution limits may be impacted by your salary. Since you are working fewer hours, your overall income may be lower than that of a full-time employee. This could affect the amount you are able to contribute to your 401(k).

Additional Considerations for Part-Time Workers

While the SECURE Act does open the door for part-time employees to participate in 401(k) plans, there are several other factors that may affect your decision to participate. These include:

1. Employer Matching Contributions: Not all employers offer matching contributions. Even if you’re eligible to contribute to your 401(k), it’s important to understand whether your employer will match your contributions. Employer matching contributions can significantly boost your retirement savings, so it’s worth checking the details of your employer’s plan.
2. Roth vs. Traditional 401(k): Some employers offer both Roth and traditional 401(k) options. The key difference between the two is how they are taxed. Roth 401(k) contributions are made with after-tax dollars, while traditional 401(k) contributions are made with pre-tax dollars. If you’re part-time, you’ll need to consider your tax situation and how you expect it to change over time.
3. Plan Fees: Every 401(k) plan has administrative fees. If you are eligible for a 401(k) through your employer, it’s essential to understand what fees you’ll be responsible for, as they can impact your long-term savings. Low-fee 401(k) plans are generally preferable, as high fees can eat into your retirement savings over time.
4. Automatic Enrollment: Some employers automatically enroll employees in their 401(k) plan. However, this may not apply to part-time workers in all cases. Be sure to confirm whether your employer requires you to opt-in, or whether enrollment is automatic once you meet the eligibility criteria.

Frequently Asked Questions

Here are some of the related questions people also ask:

Can part-time employees contribute to a 401(k)?

Yes, part-time employees can contribute to a 401(k) if they meet the eligibility criteria under the SECURE Act, which includes working at least 500 hours per year for three consecutive years.

What is the SECURE Act and how does it affect part-time workers?

The SECURE Act, passed in 2019, expanded 401(k) access to long-term part-time employees by allowing those who work at least 500 hours per year for three consecutive years to participate in their employer’s 401(k) plan.

How many hours do I need to work to qualify for a 401(k) under the SECURE Act?

To qualify for a 401(k) under the SECURE Act, you must work at least 500 hours per year for three consecutive years.

Can my employer refuse to offer me a 401(k) plan if I work part-time?

Employers are required by the SECURE Act to allow long-term part-time employees to participate in a 401(k) if they meet the hours requirement. However, employers can have additional rules or restrictions within their plans.

What are the contribution limits for part-time workers in a 401(k)?

Part-time workers can contribute up to the standard 401(k) limits set by the IRS. For 2025, the contribution limit is $22,500 for employees under age 50, and $30,000 for those 50 and older, including catch-up contributions.

Do part-time employees receive employer matching contributions in a 401(k)

Employer matching contributions depend on your employer’s specific 401(k) plan. Not all employers offer matching contributions, but some do, which can significantly boost your retirement savings.

Can I choose between a Roth and a Traditional 401(k) as a part-time worker?

If your employer offers both options, you can choose between a Roth and a Traditional 401(k). Roth 401(k) contributions are made with after-tax money, while Traditional 401(k) contributions are pre-tax.

How long does it take to qualify for a 401(k) as a part-time worker?

It takes three consecutive years of working at least 500 hours per year to qualify for a 401(k) under the SECURE Act.

Are there any fees associated with part-time employee 401(k) plans?

Yes, like all 401(k) plans, there are typically administrative fees associated with managing the plan. It’s important to review the fees to understand their impact on your retirement savings.

The Bottom Line: Can You Get 401k Part-Time?

Yes, under the SECURE Act, part-time employees can now qualify for 401(k) plans if they work at least 500 hours per year for three consecutive years. However, while the law mandates eligibility, your ability to participate will still depend on your employer’s plan details. You will need to review the specifics of your employer’s 401(k) plan to understand contribution limits, employer matching contributions, and whether you can access the plan at all.

The SECURE Act provides a significant opportunity for part-time workers to save for retirement, and it’s important to take full advantage of this opportunity if you qualify. Even if you work part-time, saving for retirement is crucial, and contributing to a 401(k) plan can help you secure a comfortable financial future.

In conclusion, can you get 401k part-time? Absolutely! But you need to meet the eligibility criteria and ensure your employer’s 401(k) plan allows you to participate. If you meet the SECURE Act’s requirements, it’s worth exploring the options available to you and considering contributing to your retirement savings. Don’t miss out on this opportunity to grow your nest egg, even if you’re working part-time.