Safe Harbor Notice

[Guest igglesfan]

Plan is a safe harbor plan, with immediate eligibility for elective deferrals, but one year of service required to be eligible to receive safe harbor match. (Plan is tested appropriately using disaggregation). Is the safe harbor notice required for all employees, or only those eligible to receive the match? I have not been able to find guidance one way or another.

[pmacduff]

I have nothing concrete for you but since the regs require the notice so that the participant can determine how much they wish to contribute based on the SHMAC info, my opinion is that you only need provide it to the participants as they become eligible to receive SHMAC.

[Tom Poje]

the sample notices that I have seen (and which I based the notice I give) carry a note that says something to the following

"you must have been credited with 1 year of service (1000 hours) and have turned age 21 to be eligible for the safe harbor contribution"

thus, all participants receive the notice, including those who are 'otherwise excludable'