IRS Issues Guidance on Amendments to Safe Harbor Plans Relating to the Windsor Decision

The Internal Revenue Service (IRS) recently issued Notice 2014-37 which addresses the amendments needed to comply with the Supreme Court’s decision in U.S. v. Windsor by safe harbor 401(k) plans. These are 401(k) plans that satisfy the nondiscrimination requirements for 401(k) deferrals and matching contributions by making employer contributions that satisfy certain conditions.

The IRS strictly limits when safe harbor 401(k) plans can be amended. However, the IRS previously indicated in Notice 2014-19 that plan sponsors must amend their plans if the plan’s terms are inconsistent with the Court’s decision in Windsor, which provided that same-sex couples must be treated similarly to opposite-sex couples for federal tax law purposes.

In Notice 2014-37, the IRS explains that a plan will not fail to satisfy the requirements for safe harbor 401(k) plans if they are amended in accordance with Notice 2014-19.

A summary of Notice 2014-19 is available here.
Notice 2014-19 is available here.
Notice 2014-37 is available here.