Auto Enrollment - Safe Harbor Plan

[austin3515]

Is it possible to add mid-year? What if we amend today have it effective 3/1/2015?

[Lou S.]

I don't think it is one of the things specifically allowed in the SH plan to amend mid-year. That said, I'm not sure it is an amendment that the IRS would have a problem with provided advance notice was given and it didn't change info in the SH notice.

Amending now effective 3-1-15 I would think would be no problem at all so long as the SH notice addressed it.

[John Feldt ERPA CPC QPA]

If your plan is a PS only plan, adding deferral 3-1-2015, then no problem.

Otherwise, I think the 401(k) regulations state that the provisions must be in place prior to the beginning of the plan year, and remain in place for the entire plan year. (not just for a portion of the plan year). Your suggesting that starting March 1 will somehow satisfy the "entire plan year" requirement. I am not convinced that it would satisfy that. I will have to look further.

[Kevin C]

I'm with John on this one. Some of the rules for an automatic contribution arrangement are listed in 1.401(k)-3(j)(ii). That makes the ACA "provisions that satisfy the rules of this section" and per 1.401(k)-3(e)(1) they can not be amended mid-year.

If it's a 2/28 plan year end, you can amend now to be effective 3/1/2015.

[austin3515]

"If it's a 2/28 plan year end, you can amend now to be effective 3/1/2015."

But not if it is a 12/31 year-end, correct? That was my conclusion as well, but wanted to see what others thought as well.