Page 43 - AprDefComp
P. 43

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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