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Safe Harbor for Short Year Plans


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Guest bobbysmith
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I have a client that added a 401(k) feature in April 2000 and set it up as a safe harbor plan. Their PYE is 9/30. The IRS requires that the safe harbor plan meet safe harbor requirements for all 365 days of a plan year. In the case of start up plans that have short plan years for their first year of operation, does the IRS consider the 365 day rule satisfied if the plan was set up as a safe harbor plan from its origin?

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