Withdrawal of Safe Harbor Notice

[Dougsbpc]

We have a takeover that was originally a profit sharing plan. The prior plan administrator was in the process of converting to a Safe Harbor 401(k). Safe Harbor notices were provided to employees just 2 weeks ago. All eligible employees signed Safe Harbor notices. The employer now has cold feet and wishes to not go forward with the Safe Harbor 401(k). Can they withdraw the safe harbor aspect of the plan and just remain as a PSP?

Thanks much.

[Tom Poje]

you said 'was in the process of converting the plan'

was this done? what is the effective date? or has only a notice been issued and nothing else been done?

[Dougsbpc]

Only a notice has been provided. After the 30 days were up, the employer was going to adopt a new 401(k) document. However, now they dont want to.