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)