ICI Draft Comment Letter On IRS Proposal To Allow Suspension Of Safe Harbor Nonelective Contributions

 

 

[23644]

 

July 21, 2009

TO: PENSION COMMITTEE No. 15-09
PENSION OPERATIONS ADVISORY COMMITTEE No. 16-09     RE: ICI DRAFT COMMENT LETTER ON IRS PROPOSAL TO ALLOW SUSPENSION OF SAFE HARBOR NONELECTIVE CONTRIBUTIONS

 

Attached is a draft letter on the IRS’ proposed regulations allowing 401(k) and 403(b) plans using the design-based safe harbor for nonelective contributions to reduce or suspend the nonelective contributions during the year. [1]

 

The draft letter supports the proposal.  It offers one suggestion:  IRS consider issuing, as part of the final regulations, sample or model language that sponsors of prototype programs can use in amending their plan documents.

 

Please let the undersigned (mhadley@ici.org or 202-326-5810) know by August 7, 2009 if you have comments on the letter or have additional issues that the Institute should raise.

 

Michael L. Hadley
Associate Counsel

Attachment

endnotes

 [1] See Institute Memorandum to Pension Committee No. 9-09, Pension Operations Advisory Committee No. 10-09 [23461], dated May 18, 2009.