Updated Safe Harbor Notice for Comp exclusion required when Notice language not directly impacted?

[Abby N]

Plan with safe harbor match is going to be amended mid-year to exclude bonus from definition of compensation.  Safe Harbor notice currently refers to SPD for definition of compensation.  Is an updated safe harbor notice required to be distributed since no change is being made to the notice?  I don't think SMM notice timing is impacted, but curious what others think.  
 

Thanks for your thoughts and help!

[justanotheradmin]

see the paragraphs about Safe Harbor Notices https://www.irs.gov/retirement-plans/mid-year-changes-to-safe-harbor-plans-or-safe-harbor-notices

I'm sure you've thought about these in relation to the compensation change - but in case not:

will §414(s) compensation testing pass? 
is the cutback allowed? 

I know you asked questions on another post. so hopefully you were able to get the information you need to to do an analysis for the plan prior to any amendment being done

[WCC]

7 hours ago, Abby N said:

Plan with safe harbor match is going to be amended mid-year to exclude bonus from definition of compensation.

Does the plan intend to keep safe harbor status after the mid year amendment? I am of the opinion the plan cannot be amended mid year to exclude bonuses as this will reduce the match formula which the participants have already accrued the right to receive. The exceptions to this are found in 401(k)-3(g) and 1.401(m)-3(h).  My opinion is based on IRS Notice 2016-16 Section III B(iii). There are a handful of prior discussions on this topic in these message boards with other commentary. 

[bp parv]

I second and third what has been stated above. At least to me, this seems like a prohibited mid-year amendment under IRS Notice 2016-16. Notice is not your issue. Your issue is that you cannot make this amendment mid-year. 

[Abby N]

To put a bow on this one, after some more digging I agree with the above.  I had thought I had heard/read somewhere that the restriction on "suspension and reductions" only applied if the reduction is below the minimum safe harbor amount.  I didn't find anything on that, but did find some informal IRS comments from 2009 that any reduction would be restricted.  And informal IRS comments trump vague memories...

Thanks for everyone's comments and help in getting me to move in the right direction.