amendment of plans for the final 401(k) and removal of Safe Harbor provision

[Guest wespac]

Hi all,

Has anyone amended their plans for the final 401(k) regulations (including the Safe Harbor for hardship distributions) that are effective for plan years that begin on or after January 1, 2006?

Also, has anyone amended to remove Safe-Harbor language from plan documents from plans that do not actually use the 401(k) Safe Harbor?

Is anyone doing an amendment that includes both final 401(k) and removal of “safe-harbor “plan provisions.

[ERISAnut]

I have amended for all types of events. The important thing to note is that the term "Safe Harbor" has different meanings for different sets of circumstances.

For instance, a Safe Harbor Hardship Definition how includes Funeral Expenses where before it included only Education, Prevent Eviction or Foreclosure, Medical, Purchase of Primary Residence.

A Safe Harbor 401(k) implies that the plan is meeting the requirements to be deemed to pass the ADP (and perhaps ACP) test.

Taking this into account, what are we trying to accomplish?