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Focused Topic 06: Correcting Safe Harbor 401(k) Plan Failures
Presentor: Stephen Forbes Recorded Date: 10/8/2013 Duration: 60 Min.

This program was recorded during a live presentation on October 8, 2013.

Correcting Safe Harbor 401(k) Plan Failures
Tuesdays with Derrin and Steve

Safe harbor 401(k) plans continue to grow in popularity. A recent IRS survey indicated that approximately 43% of 401(k) plans are safe harbor. Safe harbor plans have many strict requirements (notice, required contributions, restrictions on mid-year amendments, plan document provisions, timing, etc.). Unfortunately, this means plans have more opportunities to make plan mistakes.

This Web seminar identifies the common (and not so common) mistakes unique to safe harbor 401(k) plans and the recommended IRS methods of correction. It also provides recommendations for how to correct those errors for which the IRS has not provided suggested methods of correction.

Topics include:

  • Improper exclusion
  • Failure to withhold correct amount
  • Failure to provide timely safe harbor notice
  • Safe harbor amendments
  • Timing of safe harbor contributions
  • Use of forfeitures to fund corrective contributions
  • Distribution restrictions
  • Proving delivery of safe harbor notice
  • Failure to contribute top-heavy minimum when plan uses the otherwise excludible employee rule
  • Mid-year termination or amendment failures

Prerequisites: There are no prerequisites or advance preparation for this web seminar. However, the instructor assumes attendees are familiar with the basics of safe harbor 401(k) operation.

Level: Intermediate

Instructional Delivery Method
Group - Internet-Based

Speaker - Stephen W. Forbes, J.D., LL.M.
Author of The 5500 Filing Guide

Objectives: After attending this Web seminar, an attendee should be able to:

  1. Calculate correction for improper exclusion
  2. Determine how to correct failure to provide the safe harbor notice
  3. Correct a failure to timely adopt safe harbor provisions
  4. Correct a failure to timely contribute safe harbor contributions
  5. Demonstrate how it complied with the notice requirement
  6. Correct a distribution failure
  7. Correct a mid-year termination or amendment failure
  8. Correct a failure to make a top-heavy minimum

Hardware System Requirements: 

  • Windows 95, 98, NT 4.0, 2000, XP, Windows 7
  • Internet Explorer 4.01 or later, Netscape 4.08 or later, and set Internet browser to allow pop-up windows.
  • High-speed Internet connection.
  • Pentium 166+ MHz, 128MB RAM or more.
  • 1023 x 768 or higher display resolution.
  • Soundcard and Speakers.

Software Requirements:

Program related requests, questions, or concerns may be emailed to: