Smith Anderson (North Carolina): COVID-19: Reducing or Suspending Employer Contributions to 401(k) Plans Mid-Year

In times of economic uncertainty, employers who typically make 401(k) matching or profit-sharing contributions often choose to reduce or suspend those contributions to conserve cash and save jobs. Figuring out whether and when in the year such changes can take effect and the steps necessary to make those changes, including whether a plan amendment or advance notice will be required, depends on the contribution type and whether the contribution is a safe harbor contribution, otherwise required by the plan document, or discretionary. MORE.

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