Participation by Substitute Teachers

Q. Can substitute teachers participate in 403(b) and/or 457(b) plans?

A. It depends on the plan document. You cannot exclude by class of employee including substitute teachers. However if the plan excludes employees who work less than 20 hours a week (or 1,000 hours per year) and the teacher does not work (or it is anticipated that they will not work) at least 1,000 hours then they are not eligible. Alternatively, if the plan has no exclusions then all employees are eligible regardless of the number of hours worked.

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