Safe Harbor "Switcheroo"

[lkpittman]

Okay--first plan year is 2000. Employer elected to use the 3% default for ADP testing. Then, in 2001, they amended to use an safe harbor match (notice requirement met). Now, for 2002, they want to know about eliminating the match. I will advise them to simply not provide the annual safe harbor notice and amend the plan to use current year ADP testing, correct? Anyone see any problems or is there anything else we need to do to get "out" of the safe harbor?

I will also advise them that they can wait until sometime during 2002 under Notice 2000-3 guidance, but I think they are looking to get out before.

Thanks!