The SECURE Act created much-needed change to the safe harbor non-elective contributions, making it more of a weapon to combat failed discrimination testing. Previously, a plan sponsor could only adopt the non-elective contribution prior to the Plan Year with a notice. Now, the contribution can be added at any time during the year and even after the Plan Year has ended if the plan sponsor ups the contribution to 4% of pay (but the plan still needs to pass the matching ACP test if adopted after the year). Regardless of the timing, the notice requirement is gone for good.<\/p>\n
For clients that have testing issues because of their demographics, this is something they should know about. The increased flexibility of adding the non-elective could go a long way in minimizing the need for deferral refunds or corrective QNEC contributions.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" The SECURE Act created much-needed change to the safe harbor non-elective contributions, making it more of a weapon to combat failed discrimination testing. Previously, a plan sponsor could only adopt the non-elective contribution prior to the Plan Year with a … Continue reading