IRS Releases Guidance on Mid-Year Changes to 401(k) Safe-Harbor Plans

Wodarczyk Law Firm Uncategorized

Historically, safe harbor 401(k) plans generally have not been permitted to make mid-year amendments without risking plan disqualification. In Notice 2016-16, the IRS actually expanded the type of mid-year plan amendments that are permissible without risking loss of safe harbor status.  Notification requirements apply. Additionally, this recent guidance provides a list of prohibited mid-year changes.