Safe Harbor Deferral Election change/notice

[Guest Peggy806]

Plan allows for deferral election changes as of the first of any quarter. The safe harbor notice we just sent for next year (2011) states that deferral elections may be made quarterly. However, it also states "In addition to any other elction periods provided above, you may make or modify a salary deferral election during the 30-day period immediately preceding the Plan Year for which this notice is being provided."

Employee wants to increase their 2010 deferral election now after the 10/1 date has passed. Does the "in addition" clause above apply to only the 2010 as well as the 2011 deferral election?

[GMK]

Unless I'm missing something, no.

It's too late to do anything in the 30-day period immediately preceding 2010, and the notice does not apply to 2010.

[Guest Peggy806]

Unless I'm missing something, no.

It's too late to do anything in the 30-day period immediately preceding 2010, and the notice does not apply to 2010.

That was my interpretation, too, but a person in our office had interpreted this to say that they could change their deferral election for 2010 based on the 30 days in the notice.

[masteff]

I agree, prospective change applying to "the Plan Year for which this notice is being provided".

[K2retire]

It is my understanding (from years ago, so perhaps it has changed) that safe harbor plans were required to allow election changes every December in addition to whatever other regularly scheduled change times were allowed. I think that is what that language is intended to convey.

[Guest Sieve]

I agree, but that is a prospective change for the beginning of the year with respect to which the notice relates--i.e., 2011--and not the year in which the notice is given (i.e., 2010).