Safe Harbor Plans and Super Catch-ups

[youngbenefitslawyer]

Can a safe harbor plan be amended mid-year to disallow super catch-up contributions?  In other words, is such considered a prohibited mid-year change?  Based on my reading of Notice 2016-16, the answer appears to be no, so long as the notice and election opportunity conditions are satisfied.  Is that correct?

[austin3515]

This appears to be a trick question. If you operationally permit people to make such contributions in 2026, the deadline for adopting that amendment is December 31, 2026. Is today the earliest date on which the question is even relevant to your plan? Because if it is, then I would just make sure you include super catch ups in your SECURE 2.0 amendment due by the end of the year.  Perhaps that solves your problem!

[David D]

Since Super Catch Ups first appear in the Secure 2.0 amendment, your plan is bound by how it was operationally administered for 2025 and up to now in 2026.  If you did not allow Super Catch Ups in 2025 you would not be allowing them in 2026 and have or will adopt that amendment.  If you did allow them in 2025 and want to stop them now, you would need to provide a 30 day notice and modify your Secure 2.0 Amendment to allow them for 2025 and most of 2026 before you did not allow them.

[austin3515]

Agreed on the 2025 piece :).  But if no one got capped at $31,000 in 2025 then what I said above is still true!