doombuggy Posted June 2, 2011 Share Posted June 2, 2011 We always do a notice, although I see that is doesn't seem to be required for non-pension plans. I am thinking that if a 401(k) plan has safe harbor, then it would need a notice RE: stopping the safe harbor. Agree? QKA, QPA, ERPA Link to comment Share on other sites More sharing options...
QNPG Posted June 2, 2011 Share Posted June 2, 2011 We always do a notice, although I see that is doesn't seem to be required for non-pension plans. I am thinking that if a 401(k) plan has safe harbor, then it would need a notice RE: stopping the safe harbor.Agree? Agree. No formal notice is required to term a DC plan; however, it is good practice to inform the employees any way. If you are going to submit a plan upon termination for a DL, make sure you post a notice to interested parties notifying them of the submission. I am assuming that you are speaking hypothetically about the safe harbor feature being in a plan. If the plan does in fact have a safe harbor feature, you would of course be required to give a notice of cessation 30 days prior to the effective date of the removal. "Great thoughts reduced to practice become great acts." William Hazlitt CPC, QPA, QKA, ERPA, APA Link to comment Share on other sites More sharing options...
rcline46 Posted June 2, 2011 Share Posted June 2, 2011 We are currently 'discussing' a plan term with an IRS agent who is of the firm opinion that a notice is required for the cessation of the safe harbor portion of a plan (this one was a match) even though the plan terminated. I would give a 30 day notice for safe harbor cessation. Link to comment Share on other sites More sharing options...
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