IRS Issues Safe Harbor Contribution Regulations

The Internal Revenue Service (IRS) recently published the final regulations on the “Reduction or Suspension of Safe Harbor Contributions”. The IRS indicates that:

“These regulations provide guidance on permitted mid-year reductions or suspensions of safe harbor nonelective contributions in certain circumstances for amendments adopted after May 18, 2009. These regulations also revise the requirements for permitted mid-year reductions or suspensions of safe harbor matching contributions for plan years beginning on or after January 1, 2015. The regulations affect administrators of, employers maintaining, participants in, and beneficiaries of certain defined contribution plans that satisfy the nondiscrimination tests of section 401(k) and section 401(m) using one of the design-based safe harbors.”

To read the final regulations, click here.