Safe Harbor Match and Disc Match in a new Plan effective for 2002

[Guest KMB]

This question has a number of parts to it...

First, we have a client who has started a new 401(k) PSP effective 1/1/02 with all current employees in 03/01/02. The Plan was not implemented though until March/April. They want the Plan to be Safe Harbor for 2002. Is this allowed? They want to do 100% to 6% Safe Harbor Match. Can SH election be distributed now?

Second, they want to do additional disc match, up to 4%. I don't think they have determined the "disc" part. What kind of communication to the employees is necessary? Does the Company need to present a Matching Resolution in Addition to the Safe Harbor Election? I can't get a firm concensus if and when to use a matching resolution these days. It seems that years ago it was a standard part of the document process, now I can't seem to find that firms do these on a consistent basis. kmb

[Archimage]

If I understand you correctly, the plan is currently in operation and they now want to make the safe harbor match. In this case they would not be able to implement the SHM until next year and the employer will have to provide a notice to all participants at least 30 days before the next plan year begins.