As COVID-19 continues its upheaval of nearly all aspects of life, retirement plan administration included (see some of our prior discussions here, here, here and here), the Internal Revenue Service recently issued guidance providing additional relief for the sponsors of certain plans. IRS Notice 2020-52 clarifies requirements for mid-year changes to a
safe harbor 401(k) plans
More Permissible Mid-Year Changes to Safe Harbor Plans and Safe Harbor Notices
By Jackson Lewis P.C. on
Posted in Uncategorized
An employer can adopt what is called a “safe harbor” 401(k) plan. Such a plan requires an employer to commit to making a specific contribution to each plan participant. In doing so, the plan is deemed to pass the annual Actual Deferral Percentage (ADP), the Actual Contribution Percentage (ACP), and the Top Heavy tests, which…