Safe Harbor notice for termianting plan

[BG5150]

I have a plan that is terminating that is a wait-and-see Safe Harbor plan. They dutifully gave the notice in November that they MIGHT make the 3% non-elective.

I'm pretty sure they have to follow up with one that states that they won't be doing it for 2010.

Does it have to be a stand alone notice? Or can they just put it in the notice they are giving everyone that the plan is terminating?

[D Lewis]

I don't know if there is an official answer, but I can't see why they can't be done together.

I know we did one that way last year.

Either way, the supplemental safe harbor notice must be given.

[austin3515]

PArticipants will be notified if the Employer decides to MAKE the Safe Harbor Contribution. There is no requirement to tell them the decision has been made NOT to make it.

That doesn't mean you might give the notice for other reasons, but there is no requirement to do so.

From § 1.401(k)-3 Safe harbor requirements.

(2) Contingent notice provided. A plan satisfies the requirement to provide the contingent notice under this paragraph (f)(2) if it provides a notice that would satisfy the requirements of paragraph (d) of this section, except that, in lieu of setting forth the safe harbor contributions used under the plan as set forth in paragraph (d)(2)(ii)(A) of this section, the notice specifies that the plan may be amended during the plan year to include the safe harbor nonelective contribution and that, if the plan is amended, a follow-up notice will be provided.

[Kevin C]

I see under 1.401(k)-3(f)(2) & (3) where a follow up notice is required if the plan is timely amended to provide the SHNEC. But, where do you see a requirement to provide a follow up notice if the plan is not going to be amended to provide the SHNEC? Of course, you could provide such a notice even if it isn't required.