Page 42 - AprDefComp

Suspending matching contributions

• Options depend on your plan document

• Discretionary contributions generally can be stopped

• Notifying participants is wise

• "Fixed" or "required" contributions maybe not

• Review reason for them (collective bargaining,
contracts, etc.)

• Safe Harbor contributions typically can only be stopped

• If specific language was included in the
participant notice

• Participants must get 30 days advance notice

• Contributions must be made through date 30
days after participant notice

• If employer is operating at an "economic loss" as
defined in the Internal Revenue Code

• Contact your tax and/or legal advisor to see if
you qualify

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