movedon Posted March 14, 2006 Posted March 14, 2006 I have a client who wants to amend it's traditional calendar-year 401(k) plan and make it safe harbor, and, of course, doesn't want to wait until next year to do it. Anyone know a reason why they couldn't amend the plan year to 7/1-6/30, issue safe harbor notices by 6/1/6 and add the safe harbor provision effective for the 7/1/6-6/30/7 plan year?
Bob R Posted March 15, 2006 Posted March 15, 2006 No legal reason that I know of that would prevent it. From a practical perspective, operating a non-calendar year plan that isn't the same as the employer's fiscal year always leads to confusion.
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