Stopping the Safe Harbor Match

[Earl]

If you stop the SH match I believe you need to give 30 days notice. But if you are stopping both the match and the deferrals (effectively terminating the plan) is there any reason you can't stop the deferrals immediately, effectively end-running the match notice requirement?

[Tom Poje]

based on the regs that seems reasonable, although of course, the plan would still have to perform the ADP and ACP test, and any amounts due to test failures would still have to be distributed.

[Earl]

Absolutely, but the liability accrual could seem to be ceased immediately.

Thanks alot for your reply.