Auto Enroll Safe Harbor Match

[Guest Jamie Hayes]

May an employer stop Automatic Enrollment Safe Harbor contributions during the Plan year with adequate Notice and amendments? They can with a regular Safe Harbor Match. I haven't seen anything written specific to the Auto Enroll Safe Harbor Match. Can someone offer assistance???

[Guest Sieve]

A QACA is simply a different type of safe harbor 401(k) plan, and therefore the rules that generally apply to safe harbor plans also apply to a QACA. Among other provisions, the proposed regs add Reg. Section 1.401(k)-3(j) specifically dealing with this new safe harbor arrangement, but the QACA scheme is all part of the safe harbor -3 regs. Therefore, the general rules regarding the reduction or suspension of safe harbor matching contributions of -3(g) will also apply to QACAs.