ftwilliam.com Offers Sample Amendment for Suspending Safe Harbor Contributions

A sample plan amendment to suspend safe harbor non-elective contributions was released by ftwilliam.com, a plan document, government forms, and administration software provider.

The amendment is available at no additional charge for both per plan and annual subscription holders of the ftwilliam.com plan document software, according to a press release. It will be generated in MS Word and may be customized to suit each plan.

Last week, the Internal Revenue Service (IRS) proposed rules that would permit employers affected by substantial business hardship to decide mid-year to reduce or suspend safe harbor non-elective contributions to 401(k) and 403(b) plans (see “IRS Opens Door for Safe Harbor Cuts“). Previously, plans were only permitted to cease safe harbor non-elective contributions upon termination of the plan for specified situations.