The IRS today released an advance version of Notice 2020-52 to clarify the requirements that apply to a mid-year amendment to a safe harbor section 401(k) or section 401(m) plan that reduces only contributions made on behalf of “highly compensated employees.”
Notice 2020-52 [PDF 125 KB] also provides temporary relief in connection with the ongoing coronavirus (COVID-19) pandemic from certain requirements that would otherwise apply to a mid-year amendment to a safe harbor section 401(k) or section 401(m) plan adopted between March 13, 2020, and August 31, 2020, that reduces or suspends safe harbor contributions.
The purpose of this report is to provide text of the IRS notice.
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