Changing Safe Harbor Match Mid year

[PMC]

Getting some conflicting information - can an employer change their safe harbor match to an enhanced match during the plan year. For example, calendar year plan year and from 1-1 to 6-30 the plan is providing a basic S-H match. Effective 7-1 the employer wants to use an enhanced match for the remainder of the plan year. Plan is amended effective 7-1 and revised Notices distributed.

I thought changing the S-H match (other than eliminating it with proper notice, amendment) during the year was prohibited?

And if changing the basic S-H match to an enhanced match is allowed, is changing a S-H nonelective from 3% to a higher percentage during the year allowed (again with proper amendment and notices)?

[Tom Poje]

The IRS has never indicated if you can 'improve' conditions (e.g. even modifying eligibility to let more people may be a problem), though they did imply (at least at one of the Pension conferences) you could add a feature like Roth. I believe they mentioned they would possibly address the issue some day, but that doesn't help at the moment.