safe harbor notice question

[K2retire]

A plan with a safe harbor match provision is thinking about amending to remove the safe harbor. A notice that the safe harbor will be discontinued in 30 days is distributed. Plan sponsor changes their mind after figuring out that the top heavy minimum will cost more than the safe harbor match. No amendment is ever signed.

What sort of notice is required now?

[Tom Poje]

one can only wonder.

at the 2007 ASPPA Conference the following was asked:

Q19) Safe Harbor 401(k): A notice is issued indicating a safe harbor contribution will be made for the upcoming year, but the plan was never amended to contain safe harbor language. Now that it is after plan year end, it is too late to amend to correct the problem. Is the plan on the hook for the contribution, and must also run all appropriate tests?

A: Notwithstanding the notice provided, the plan terms do not provide for the safe harbor plan. Therefore, you should follow the plan terms and run the ADP test as needed. (Whether there is a Title I issue due to the notice is in the purview of the DOL.)

note in this case there was no mention of issue a 'new' notice. I guess you simply tell the people it was decided not to amend the plan and the safe harbor is still in effect.

[K2retire]

That was my guess as well, but I was hoping for something a little more definitive!