The IRS has provided temporary relief from certain requirements that would otherwise apply to a mid-year amendment to a safe harbor 401(k) or 401(m) plan

The IRS has provided temporary relief, in connection with the ongoing COVID-19 pandemic, from certain requirements that would otherwise apply to a mid-year amendment to a safe harbor 401(k) or 401(m) plan.

Specifically, IRS Notice 2020-52 provides temporary relief related to mid-year reductions or suspensions of safe harbor matching or safe harbor nonelective contributions. If a plan amendment that reduces or suspends safe harbor matching contributions or safe harbor nonelective contributions during a plan year is adopted between March 13, 2020, and August 31, 2020, then the plan won’t be treated as failing to satisfy the requirements.

Read Notice 2020-52 here: https://bit.ly/2VuHzqE