Ftwilliam.com Releases Sample Amendment to Suspend Safe Harbor Nonelective Contributions
MILWAUKEE, WI, May 28, 2009 -- Ftwilliam.com, a leading plan document, government forms and administration software provider, announced last week the release of a sample amendment to suspend safe harbor nonelective contributions. The IRS recently released proposed amendments to Treasury Regulation 1.401(k)-3 and 1.401(m)-3 that will allow the suspension of safe harbor nonelective contributions. Previously, plans were only permitted to cease safe harbor nonelective contributions upon termination of the plan for specified situations. Taxpayers may rely on the proposed regulations.
In response to the new regulations, Sheryl Deer, Ftwilliam.com's Vice President - Consulting Services stated, "Beginning as early as January 2009, Ftwilliam.com has received dozens of emails and phone calls asking how to eliminate a 3% nonelective safe harbor contribution for 2009. These inquiries have increased exponentially since then. We are extremely pleased the Ftwilliam.com system-generated amendment is now available."
Aimee Nash, Ftwilliam.com's Vice President - General Counsel, notes "the procedures are very similar to terminating a safe harbor match. The main difference is that a business hardship is required to terminate safe harbor nonelectives while hardship is not required to cease a safe harbor match." She also stated, "plans that are top heavy should evaluate whether ceasing the safe harbor nonelective contribution will be worthwhile since many may be required to contribute to the plan anyway." Aimee wrote an article explaining the new regulations which is available on the Ftwilliam.com website.
The amendment is available at no additional charge for both per plan and annual subscription holders of the Ftwilliam.com plan document software. The amendment will be generated in MS Word and may be customized to suit your plan.
About Ftwilliam.com
Ftwilliam.com is a leading provider of the highest quality plan documents (retirement, welfare and non-qualified), government forms (5500/PBGC, 1099 and IRS) and now administration /compliance software. Ftwilliam.com's software is web-based and can be accessed by any user with a computer connected to the internet. All plan documents and forms are delivered instantly to the desktop in word processing or Adobe PDF format.
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