Guest SPollock Posted February 9, 1999 Posted February 9, 1999 I have a client who has failed testing the last two years on their 401(k) plan. We have made QNEC and QMAC contributions both years. We are discussing changing (amending) the plan to be a Safe Harbor 401(k) Plan. The plan year is Nov 1 thru Oct 31 (obviously not a calendar year plan). My understanding is the employer must inform the employees of the change on or before March 1 for 1999. Is this only for calendar year plans? If yes, when must my client inform his employees or must the plan be changed to a calendar year? Can he make the change before Nov 1, 1999 since they are technically not in 1999 for their plan?
Guest Bill Posted February 9, 1999 Posted February 9, 1999 This plan can amend to provide safe harbor provisions starting 11-1-99 for the 1999 (11-1-99 to 10-31-00) plan year. The notice to participants must be given within a "reasonable" time prior to 11-1. The IRS has suggested that this means at least 30 but not more than 90 days prior to the start of the plan year.
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