Safe Harbor Match - Not for 2008

[Jilliandiz]

Plan is a Safe Harbor Matching Plan. The client does not want to use the Safe Harbor Match Provision for 2008, do I have to amendment the plan or do anything? Or as long as the SH Notice does NOT go out for 2008, its fine?

[Tom Poje]

no no no no no no no. safe harbor notice is only a piece a paper.

it is the document that is binding. if it has safe harbor language the plan is safe harbor.

it must be amended, and then you give an SMM (or SPD) saying the plan is no longer safe harbor

[Jilliandiz]

Do I have to amend the entire plan document or can I just do a Amendment Attachment to the plan document?

[John Feldt ERPA CPC QPA]

Your plan document probably has a section that explains how amendments are to be done.

For example, one document I work with explains that amendments must be done either by restating the entire adoption agreement, or by executing a "page substitution amendment". A page substitution amendment is where certain pages are changed and the execution page has a neat little section where you spell out which pages or sections are amended and their corresponding effective dates. You may want to prepare a resolution for the company to adopt the amendment with.

If your plan is a calendar year plan and it is currently a Safe Harbor Match plan, then this amendment must be executed before January 1, 2008 in order to remove the Safe Harbor matching requirements. You'll need to pass ADP and ACP tests, of course.

edit: typo