Safe Harbor 3% Maybe

[52626]

3% Maybe Safe Harbor Plan.

The employer wants to notify participants today that the plan will not be safe harbor for 2015.

Any issue with this notifciation at this time?

Since the decision was made not to be Safe Harbor, can the employer amend the plan mid year and change the default cash out provision.

Thanks

[Tom Poje]

in some ways it is the opposite

you have a document that is not safe harbor

you issued a notice that says it might be a safe harbor

if it was decided to go safe harbor then you issue a notice saying 'yes' and amend the document, at least 30 days before the end of the year.

I know of no requirement that says you have to tell the people 'no', though I would probably do it anyway. see 1.401(k)-3(f)

since your plan is not currently safe harbor you can amend with no problem, as far as I know.