WebYes, the IRS allows an “enhanced match” which still meets the safe harbor mandatory contribution as long as it equals or exceeds the basic match at each tier. A common enhanced match is 100% match on the first 4% of compensation. Example WebMar 19, 2024 · The safe harbor contribution must be funded for the period up through the date of plan termination, but the plan will not be subject to ADP/ACP testing for the plan year and the top heavy exemption will still apply.

IRS Issues Guidance on Mid-Year Amendments to Certain Safe Harbor …

WebYou would want to ensure the amendment to add the safe harbor provides that it only applies to that one year. Q9: If the plan is a safe harbor non-elective but the document has a provision that the client could give an additional match, would the option in the document for a discretionary match then require a safe harbor notice? WebApr 30, 2024 · On January 29, 2016, however, the IRS issued Notice 2016-16, which provides guidance on mid-year changes to safe harbor 401 (k) plans. Pursuant to Notice 2016-16, a mid-year change to a 401 (k) safe harbor plan, or to a plan’s safe harbor notice, does not violate the safe harbor rules as long as: corner protectors for books

Suspending Safe Harbor 401(k) Contributions: A …

Webthe additional requirements that apply if the plan chooses to add an eligible automatic contribution arrangement (EACA) or a qualified automatic contribution arrangement, both of which generally can't be added to a plan mid-year. The employer would then apply the automatic contribution arrangement to the employees following the amended plan. WebJun 5, 2024 · Once the safe harbor matching contribution is discontinued for the year, the plan sponsor may not reinstate the safe harbor match contribution for the current plan year. Safe harbor status is lost ... WebIf they satisfy the notice rules, if applicable, safe harbor 401 (k) plans sponsors may mid-year: Increase future safe harbor non-elective contributions from 3% to 4% for all eligible … fanny britt