Guest JJC Posted April 21, 2003 Posted April 21, 2003 A safe harbor plan is removing the safe harbor provisions as of the next plan year. Assuming the five-year requirement is met and no discretionary match provisions are available, is there any reason why the plan cannot use prior year testing method
R. Butler Posted April 21, 2003 Posted April 21, 2003 Must use current year. See IRS Notice 2000-3, Section III, Q&A #6
MWeddell Posted April 21, 2003 Posted April 21, 2003 Using the prior year testing method for the year after the safe harbor plan rules no longer apply should be fine if you've been using the current year method for 5 consecutive years. The authority cited by the above posts concerns changes in the middle of a plan year.
R. Butler Posted April 21, 2003 Posted April 21, 2003 MWeddell is correct about my cite. I didn't read your question carefully enough.
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