Benefits Blast

Thee IRS recently clarified what mid-year changes administrators can make to safe harbor plans (including Code Section 403[b] plans) in Notice 2016-16. The notice provides that a mid-year change either to a safe harbor plan or to a plan’s safe harbor notice does not violate the safe harbor rules merely because it is a mid-year change, provided the applicable notice and election opportunity conditions are satisfied and the mid-year change is not a prohibited mid-year change.