IRS Expands Ability to Make Safe-Harbor Plan Amendments
IRS Notice 2016-16 provides that a mid-year amendment to a safe-harbor retirement plan or safe-harbor notice will not violate safe-harbor rules.
- Increasing an employee’s required number of completed years of service.
- Reducing the number of employees eligible to receive safe-harbor contributions.
- Changing the type of safe-harbor plan.
- Modifying how the plan determines matching contributions.