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When can we adopt a Safe Harbor Plan to utilize either a Safe Harbor non-elective contribution or a Safe Harbor matching contribution?

April 26, 2017adopt contribution matching non-elective Plan safe harbor utilize

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When can we adopt a Safe Harbor Plan to utilize either a Safe Harbor non-elective contribution or a Safe Harbor matching contribution?

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For existing plans, Safe Harbor plans are only adopted prior to the end of the current plan year but made effective for the beginning of the next plan year. A 30-day notice announcing the Safe Harbor provision must be provided each year to all plan participants prior to the beginning of the new plan year. There are exceptions for newly established 401k plans and plans that are terminating. Your retirement plan provider will assist in implementing this plan design change.