Plan term notice/DC plan

[doombuggy]

We always do a notice, although I see that is doesn't seem to be required for non-pension plans. I am thinking that if a 401(k) plan has safe harbor, then it would need a notice RE: stopping the safe harbor.

Agree?

[QNPG]

We always do a notice, although I see that is doesn't seem to be required for non-pension plans. I am thinking that if a 401(k) plan has safe harbor, then it would need a notice RE: stopping the safe harbor.

Agree?

Agree. No formal notice is required to term a DC plan; however, it is good practice to inform the employees any way. If you are going to submit a plan upon termination for a DL, make sure you post a notice to interested parties notifying them of the submission.

I am assuming that you are speaking hypothetically about the safe harbor feature being in a plan. If the plan does in fact have a safe harbor feature, you would of course be required to give a notice of cessation 30 days prior to the effective date of the removal.

[rcline46]

We are currently 'discussing' a plan term with an IRS agent who is of the firm opinion that a notice is required for the cessation of the safe harbor portion of a plan (this one was a match) even though the plan terminated. I would give a 30 day notice for safe harbor cessation.