At the recent ASPPA National Conference in Washington, DC, practitioners became concerned that many of the safe harbor 401(k) notices in current use no longer complied with the legal requirements contained in the final 401(k) regulations. What raised particular concern for practitioners was whether their existing safe harbor 401(k) notices actually stated the immediate vesting requirement and the hardship withdrawal restriction or merely cross-referenced the SPD. This issue is especially critical because the 2006 safe harbor 401(k) notice for calendar year plans must be provided to plan participants not earlier than October 2 but not later than December 2, 2005.

The good news for McKay Hochman clients is that the McKay Hochman safe harbor 401(k) sample notices are already compliant with the safe harbor notice requirements of the final 401(k) regulations. Specifically, each of our sample notices clearly state (in BOLD CAPITAL LETTERS) that: the safe harbor contributions are 100% vested and that the safe harbor contributions may not be withdrawn from the plan due to a hardship. Thus, our Notice needs no change and may be used as is.