N-2016-16: Mid-Year Changes to Safe Harbor Plans and Safe Harbor Notices

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January 29, 2016

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Issue Number: N-2016-16

Inside This Issue

Notice 2016-16 provides that certain types of mid-year changes to certain retirement plans do not violate safe harbor rules and additional participant notice and election opportunities for some mid-year changes. Contributions to a § 401(k) or 401(m) retirement plan must not discriminate in favor of highly compensated employees. The nondiscrimination rules may be met through a safe harbor structure that includes limits on mid-year changes and a requirement to provide notice to plan participants.

Notice 2016-16 will be in IRB 2016-07, dated February 16, 2016.

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