Safe Harbor Wait-and-See

[Guest Giovanni]

I have an existing calendar year 401(k) plan. The Company was

thinking about maybe electing Safe Harbor (3%) for 2005, so they

distributed the "wait-and-see" notice in Nov 2004. Let's suppose

that in Nov 2005 they decide to elect the Safe Harbor and they distribute the

supplemental notice notifying the participants that the plan will be

Safe Harbor for 2005. My question is....When does the plan need to be amended? Does it need to be amended by Nov 30, 2005 or Dec 31, 2005?

[Bird]

Notice 2000-3, Q&A 1, says the amendment must be done not later than 30 days before the end of the plan year. So it's Dec 1.

I'm not sure if the final regs made any changes.

[Tom Poje]

regs say "may be amend after the first day of the plan year and no later than 30 days before the last day of the plan year 1.401(k)-3(f)