How do you freeze a 401(k)?

Maybe a dumb question, but I haven't found anything concrete on the IRS website that shows how one proceeds with freezing a plan in the case of a merger, only that it's an option. Does freezing it require an amendment to the plan, or will a notice to current participants suffice (similar to a black-out period)?

You would want an amendment to indicate contributions would not be permitted going forward, and a Summary of Material Modifications.  At least there's no 204(h) notice, but of course the employees should find out the easy way rather than the hard way that there's nothing else coming out of their paychecks.

@Bri thanks for your help! Makes sense to me. 🙂

Convert the 401(k) to a Profit sharing going forward? Then stop deferrals.

Is it a safe harbor plan?

On 5/16/2022 at 3:09 PM, Bri said:

At least there's no 204(h) notice

Bri, the OP does not exclude the possibility that the plan being frozen is a DB or MP, which would require a 204(h) notice.

(The title of the post, rather than the text of the question, specified it's a 401(k) plan rather than a pension.)

On 5/19/2022 at 8:08 AM, Bri said:

(The title of the post, rather than the text of the question, specified it's a 401(k) plan rather than a pension.)

Got it. It's separate from the post. Didn't notice. Thanks, Bri.