Safe Harbor 3% Notice

[Guest Bob Neal]

Anyone know of Safe Harbor 3% notice templates?

We have elected a 3% QNEC for 2002. My understanding of IRS Notice 2000-3 and 98-52 is that an annual notice needs to be provided.

I'm hoping that there are sample forms somewhere on the net but I have yet to find them.

[Fred Payne]

Whoever provided you with your plan documents should provide you with ancillary forms.

If you have a Safe Harbor plan, the notice for 2002 was due 12/1/2001. And the notice for plan year 2003 was due 12/1/2002. If you're scrambling to give a notice now, you're too late. You don't have a Safe Harbor for year 2002 or 2003.

[Guest Bob Neal]

Thanks Fred for the reply.

I'm going back and forth on the Notices. It looks like Notice 98-52 (V), C, 2 calls for notice to be provided within a reasonable time and all relevant facts & circumstances to be used BUT 30 days prior is "deemed" satisfaction. Notice 2000-3 looks like it mandates 30 days under Q&A 1.

[Tom Poje]

not quite sure where this form came from, but it seems adequate.

My understanding is the IRS has indirectly indicated you can 'self-correct' the failure to provide notice. I think the issues that may have an effect :

is it Basic match or 3% SHNEC.

if going with the SHNEC, then it really doesn't matter if the ee defers or not, so I would guess that would be in ones favor.

Since the SHNEC can be 'optional' I would think that would also weigh heavily whether you can simply provide notice late (less than 30 days) but within a reasnable time frame.

There is simply nothing concrete, more a matter of whether the IRS would pursue it or not.