IRS Final Rule Simplifies Requirements to Suspend or Reduce Safe Harbor Contributions Mid-year | Practical Law
The Internal Revenue Service (IRS) issued final rules permitting the mid-year reduction or suspension of safe harbor nonelective contributions under Section 401(k) of the Internal Revenue Code (IRC) by employers that are operating at an economic loss or satisfy certain notice requirements. The final rules also make conforming changes to regulations that address the reduction or suspension of safe harbor matching contributions under Section 401(m) of the IRC.