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Retirement Planning
Chapter 3: Qualified Plan Overview/ACCELERATED ELIGIBILITY FOR MILITARY SPOUSES
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Chapter 3: Qualified Plan Overview

ACCELERATED ELIGIBILITY FOR MILITARY SPOUSES

01.Core Concepts

• Small Employer Tax Credit • To help offset increased cost of offering accelerated eligibility and vesting for military spouses • Credit available during first three years of participation by the military spouse • Credit = $200 plus the amount of employer contributions (up to $300) for each military spouse who participated during the year • Eligible Plans • DC, SEP, or 403(b) • Military Spouse Eligibility and Vesting Requirements • Eligible to participate and receive employer contributions within two months of hire • Employer contributions immediately vested