H.R. 2944House117th Congress (2021-2023)In Committee

To amend the Internal Revenue Code of 1986 to reduce the retirement plan period of service requirements for long-term, part-time employees.

AI-Generated Summary

Updated February 8, 2026 at 2:33 AM UTC

The bill changes the Internal Revenue Code so that long‑term, part‑time employees only need to work two years, instead of three, to meet the service‑time requirement for retirement plan participation and vesting. This reduces the eligibility threshold for part‑time workers in 401(k) plans and updates related vesting rules.

Key Provisions

Amends section 401(k)(2)(D)(ii) of the Internal Revenue Code, lowering the required service period from three years to two years for long‑term, part‑time employees.
Updates Section 112(b) of the Setting Every Community Up for Retirement Enhancement (SECURe) Act of 2019 to reference both paragraphs (2)(D)(ii) and (15)(B)(iii) of section 401(k) for vesting rule clarification.
Sets the effective date of these changes to be the same as the enactment of Section 112 of the SECURe Act of 2019.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 30, 2021

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HouseIntro Referral

Introduced in House

April 30, 2021

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 30, 2021

Bill Text

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Introduced in HouseIssued April 30, 2021

117th CONGRESS

1st Session

H. R. 2944

IN THE HOUSE OF REPRESENTATIVES

April 30, 2021

Ms. Sewell introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to reduce the retirement plan period of service requirements for long-term, part-time employees.

One-year reduction in period of service requirement for long-term, part-time workers

(a)

In general

Section 401(k)(2)(D)(ii) of the Internal Revenue Code of 1986 is amended by striking 3 and inserting 2.

(b)

Clarification of prior service for purposes of vesting rules

Section 112(b) of the Setting Every Community Up for Retirement Enhancement Act of 2019 is amended by striking section 401(k)(2)(D)(ii) and inserting paragraphs (2)(D)(ii) and (15)(B)(iii) of section 401(k).

(c)

Effective date

The amendments made by this section shall take effect as if included in the enactment of section 112 of the Setting Every Community Up for Retirement Enhancement Act of 2019.