Safe Harbor Notice

[Brian Gallagher]

I know that the Safe Harbor notivce needs to be sent before the plan year to all participants. But what about people who become eligible in the middle of the year? Do they have to get one, and what is the timing of that one?

For example, I have a plan that has immediate eligibility and monthly entry. If someone is hired in April, and can start in May, obviously, she wouldn't get a notice. Is one required for her for that year?

[R. Butler]

Its still required (See IRS Notice 98-52, V.C.2.a.) It has to be provided within a reasonable period before the participant becomes eligible. If possible I would use the same 30/90 day rules you normally use.

[Brian Gallagher]

In my exapmple above, that would be impossible. Would the notice have to be given at the time of hire?

[R. Butler]

That would seem reasonable.

[pmacduff]

Brian - I would simply hand the notice out with the enrollment forms/materials. That way you are covered.