Vesting and Withdrawal provisions in Safe Harbor Notice

[Peanut Butter Man]

This topic started in another thread, and I didn't want to post my question there because it was off-topic in that thread. That thread was http://benefitslink.com/boards/index.php?s...c=33564&hl=

How are you handling the vesting and withdrawal provisions in the safe harbor notice? Without being able to reference the SPD, the withdrawal section becomes almost a repeat of the SPD because the language of the Final 401(k) Regulations is that the notice must contain "withdrawal and vesting provisions applicable to contributions under the plan".

My concern is that the Final 401(k) Regulations do not limit this requirement to "withdrawal and vesting provisions applicable to safe harbor contributions under the plan".

[Tom Poje]

I have to give a talk at the ASPPA conference coming up shortly.

This is the example I am using (I walk through a Sample Notice)

V. Distribution and Vesting Provisions

You generally may not withdraw your deferral contributions or the safe harbor contribution except when one of the following events occurs: severance from employment with the Employer, death, disability or attainment of age 59½. You are always 100% vested in your deferral contributions, in the 3% safe harbor contribution the Employer makes on your behalf and in the safe harbor matching contributions the Employer makes on your behalf.

You may withdraw any additional contributions provided for in “Other Employer Contributions” as follows:

[Describe conditions]

The vesting schedule which applies to the additional contributions is:

[Describe vesting schedule]

This satisfies the requirements of 1.401(k)-3(d)(2)(G) - Withdrawal and vesting provision.

.....

so for example, without knowing how other software works (for better or worse I am on Relius)

I entered in user fields:

2 yrs - 20% 3 yrs - 40%

4 yrs - 60% 5 yrs - 80%

6 yrs - 100%

or whatever the plans calls for.

I then have a crystal reports that populates the fields.