The IRS now allows safe harbor plans to amend their plan document mid-year (and also retroactively to the beginning of the plan year). Unless specifically prohibited in the ruling or in other regulations, all amendments are now permitted.
Prohibited amendments include:
- Increase vesting under QACA
- Reduce employees eligible for safe harbor contributions
- Change the type of safe harbor
- Modify the matching formula to increase the amount (unless there is more than 3 months until the plan year end and the match is based on the plan year)