Client wants to adopt a safe harbor 401(k) plan with a short plan year beginning October 1, 2001. Client currently maintains no qualified plans. If the plan becomes effective on October 1, 2001, then the 3 month plan year requirement will be met. As to the notice requirement, wouldn't the following language from Notice 98-52 allow for the safe harbor notice provided to employees on September 5, 2001(today) to be deemed to be reasonable:
b. Deemed Satisfaction of Timing Requirement
The timing requirement of this section V.C.2 is deemed to be satisfied if at least 30 days (and no more than 90 days) before the beginning of each plan year, the notice is given to each eligible employee for the plan year. In the case of an employee who does not receive the notice within the period described in the previous sentence because the employee becomes eligible after the 90th day before the beginning of the plan year, the timing requirement is deemed to be satisfied if the notice is provided no more than 90 days before the employee becomes eligible (and no later than the date the employee becomes eligible). Thus, for example, the preceding sentence would apply in the case of any employee eligible for the first plan year under a newly established section 401(k) plan , or would apply in the case of the first plan year in which an employee becomes eligible under an existing section 401(k) plan.
??? Thanks.