Pammie57 Posted June 10, 2019 Posted June 10, 2019 Client set up a Safe harbor 401 (k) Plan effective 3/1/2019. They initially wanted a 3 month eligibility with entry dates monthly-following. Now we are in June, and they are wanting to amend their document to say only 60 days wait - (to agree with the wait for health benefits with their company). No one so far has been made to wait 3 months to start deferring. Thoughts?? Any IRS problems that they could run into?
CuseFan Posted June 10, 2019 Posted June 10, 2019 I believe expanding/liberalizing eligibility is one of the permissible mid-year amendments for safe harbor plans. Eve Sav 1 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
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