Safe harbor deadlines

[Guest Ephesian431]

Section 3.04 of Rev. Proc 99-23 under Notice 98-52 states that an existing 401k plan may be amended by the last day of the 2000 plan year retroactive to the first day of the 1999 plan year to satisfy the safe harbor requirements. I am trying to figure out how notification fits into this. If a plan begins on 10-1-99 with a 12-31 plan y.e., is this amendment allowable for this plan for '99? Do you see any downside for amending without meeting the notification requirements?

[Guest Phil L]

I think that particular section of the Rev Proc is simply trying to say that you have until the end of the remedial amendment period (last day of the 2000 plan year) to amend your plan retroactively to describe the safe harbor contribution. You are still required to give the employee notice in advance of the plan year.

Also there are other requirements as well such as only starting the safe harbor at the beginning of the plan year.