CARES Act & Safe Harbor

[Stash026]

Did the CARES Act change the requirements/ability to make changes to your Safe Harbor Plan?  A client asked me this, thinking a change could make up to December 1.  I don't seem to see it in the regulations, but just wanted to clarify.

Thanks!

[Lou S.]

Not the CARES Act, the Secure Act.

A 401(k) Plan that is NOT a safe harbor can be amended to a 3% Non-elective Safe Harbor in the first 11 months of the plan year.

A 401(k) Plan that is NOT a safe harbor can be amended to a 4% Non-elective Safe Harbor in the 12th month of the plan year.

For a regular 401(k) Plan, you can not add a Safe Harbor match mid-year.

For a Safe Harbor 401(k), you can not change the type of Safe Harbor; match to Non-elective or Non-elective to match mid year.