Terminating a safe harbor plan

[Guest Celtics]

I have a calendar year safe harbor match plan. The client wants to terminate the plan as of 12/31/2013. Can they do that or must they issue a 30 day notice and terminate on the 30th day which means they would need to fund the safe harbor match for anyone who defers in January, 2014. Thanks.

[ETA Consulting LLC]

They can terminate since they are not doing it "during" the year. The issue you are referring to is for terminating the safe harbor "mid year".

Good Luck!

[emmetttrudy]

technically there is no notice requirement for terminating a 401k plan. they can terminate the plan 12/31/2013.

[Kevin C]

As ERISA mentions, depending on the circumstances, 30 days advanced notice may be required for mid-year terminations under 1.401(k)-3(e)(4). But, that only applies to a mid-year termination. You are not required to provide advanced notice for a termination at year end.