Safe Harbor notice requirement

[Guest Ed Walker]

Last October we gave plan participants a "maybe notice" that for 2002 we might do a Safe Harbor 3%.

The client has now determined that they will pass APD hand down and has no interest in the safe harbor.

As I read Notice 2000-3 I don't think we need to do anything at this point. ---(If he want to implement the safe harbor we would need to amend the plan before November 30)

This is the only "maybe safe harbor" plan we have, want to be sure I have it right

Thanks

ED

[pmacduff]

Ed - There is a "supplemental notice" that must be handed out 30 days prior to the plan year end telling the participants the employer's decision regarding the safe harbor contribution. I don't know how your original "maybe" notice was drafted, but, for example, the one that we have has the supplemental notice on page 2 of the original SH notice with 3 options...1.) Employer has decided not to make SH, 2.) decided to make 3% safe harbor or 3.) decided to make contribution of _______%. The employer completes, signs, dates and distributes this supplemental notice to all participants.