Jakyasar Posted November 19, 2020 Posted November 19, 2020 To confirm, a brand new 401k plan with safe harbor provisions for 2021 has to be adopted by 12/31/2020??
C. B. Zeller Posted November 19, 2020 Posted November 19, 2020 The 401(k) portion of the plan has to be in effect for at least 3 months in the first plan year. They would have to adopt by 9/30/2021 if they want to be safe harbor for 2021. Luke Bailey 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
CuseFan Posted November 19, 2020 Posted November 19, 2020 You could adopt any time up till then (9/30) with the SH (and PS, if applicable) effective back to 1/1, if desired, but deferrals cannot begin until after the plan is adopted. Luke Bailey 1 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
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