Per the SECURE Act, beginning on or after January 1, 2020, an established 401(k) plan may add a safe harbor non-elective contribution anytime during the plan year and even during the following plan year to satisfy the ADP test under Code section 401(k)(12) only. Because the safe harbor non-elective contribution satisfies the ADP only, there is no annual notice requirement.
Ftwilliam.com offers a Safe Harbor Non-Elective Amendment you can use to add a safe harbor non-elective contribution to satisfy the ADP test on a year-to-year basis in accordance with the rules in the SECURE Act. For more information on this amendment, please refer to our Safe Harbor Non-Elective Amendment Q & A document.
If your plan sponsor isn’t sure if they want to provide a safe harbor non-elective contribution from year to year that would satisfy the ADP and/or ACP testing requirements, then you still have the option of a wait-and-see (maybe) safe harbor. For more information on the maybe safe harbor and how to amend your plan document, please refer to our email communication dated 12/20/2016 titled “Navigating the Hypothetical: Clarifying the Maybes, Maybe Nots, and Wait and Sees of Safe Harbor Plans”. You can access this email from the Home page in the software as shown below.