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Showing results for tags 'Does Employer Lose Safe Harbo'.
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Company X maintains a safe harbor 401(k) plan in which the matching contribution is structure to satisfy the safe harbor of Code Section 401(k)(12) (i.e., 100% match on elective deferrals up to 3% of compensation and 50% match on elective deferrals greater than 3% but not in excess of 5% of compensation). Employer X wants to amend the safe harbor 401(k) plan to allow for suspension of the safe harbor match by one or more subsidiaries or divisions. While it is clear that, subject to complying with the rules set forth in the regulations including the content and timing of the notice requirement and any supplemental notice requirement as applied to all participants, can the employer limit the suspension to one subsidiary and not lose safe harbor status?