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Should a CODA plan be designed(or amended) to comply with the Safe Har


Guest Alex Calin

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Guest Alex Calin
Posted

Should a CODA plan be designed(or amended) to comply with the Safe Harbor requirements? Or can it operate in diferent "mode" each year as long as proper notice is given to participants?

Also:

-What is the deadline for the notice

-Can anybody provide a sample notice?

fax: (818)992-6134

Thanx.

  • 2 weeks later...
Guest RS Vatalaro
Posted

My understanding is that the plan must actually be amended (I posed this same question several weeks ago) - deadline for amendment is 12/31/00. E.G. it's not a matter of just providing the notice or not providing the notice. So I'm not sure changing from one year to the next really would work.

Whether someone should adopt safe harbor provisions depends on the facts and circumstances and goals of the plan sponsor. Do they have test failures? Can the afford the required match/QNEC?

I've been looking for sample notice language too, haven't found. Good luck.

Posted

My understanding is that the Notice requirement is a requirement regardless of what you say in the document. The notice is to be sent no more than 90 days and no less than 30 days prior to the beginning of the plan year for which the notife applies. For 1999 as an exception, the notice was ok up to March 1 for the jan-Dec '99 plan year. Since the notice is what triggers the safe harbor election each year, I believe you can go back and forth between safe-harbor and non-safe harbor each year. In the years you do not use the safe harbor, this would require testing of course. Not sure if you would have to do a doc ammendment each year, this will depend on how the doc writers include the safe harbor provision. Perhaps the safe harbor wording will allow a year to year election, but I don't know. At this time, I don't think anyone has gotten a document determination wit hthe safe harbor language in it, and one they do, we should have until at least plan year end 2000 to ammend assuming they don't extend the period longer. One of the statements mentioned they would give at least 12 months fdrom the document languange apporval even if that extended beyond plan year end 2000. Not sure on that part however.

Posted

PS

PPD has two safe harbor notices in their PPD pension form library, one for the 3% non-elective and one for the matching version.

  • 1 year later...
Guest AlCal
Posted
Originally posted by lkpittman

I have sample notice language.  Send me your e-mails . .  

Would greatly appreciate the sample"maybe" notice langusge. Do you have also the notice that specifies the "maybe" will be implemented (thet indeed the plan will be safe harbor for that year)?

My E-mail: AlexCalin@netscape.net

lkpittman@bbklaw.com

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