Terminating a safe harbor 401(k) plan?

[John A]

When a safe harbor 401(k) plan is terminated, is a 204(h) notice required? If a safe harbor 401(k) plan is amended to remove the safe harbor feature, is a 204(h) notice required? Any special requirements other than a 204(h) notice?

[Lynn Campbell]

No 204(h) notice is needed to terminate a Profit Sharing or 401(k) Plan. Only plans subject to minimum funding standards need a 204(h) notice, as far as I know.

[wmyer]

Are you amending the plan mid-year to remove the safe harbor? If you're doing the safe harbor match and amending mid-year, there are special requirements outlined in Notice 2000-3 (30 day notice and election period, satisfy ADP/ACP test for full year with current year testing, match through effective date of amendment). Further, I don't believe you can amend the plan mid-year to remove the nonelective.