Notice Requirement for a Safe Harbor 401(k) or 401(m) Plan Providing a Safe Harbor Match Contribution

Safe harbor notices for 401(k) plans must be sent to eligible employees within a reasonable period before the start of each plan year. The IRS considers a notice to be timely if it's given at least 30 days but no more than 90 days before the beginning of the plan year.

If a mid-year change is made to the content of the safe harbor notice, the plan sponsor must provide an updated notice to employees within a reasonable period before the effective date of the change. The IRS considers 30–90 days before the effective date to be reasonable.

There are also special rules for employees who become eligible after the 90th day.

If the safe harbor notice is sent using electronic media, ensure that the following requirements of Reg. Section 1.401(a)-21(a)(5) and either Reg. Section 1.401(a)-21(b) or (c) are met:

1. • Ensure that the electronic system is designed to provide the notice in a manner no less understandable to the employee than a written paper document,
   • Ensure that the electronic system is designed to alert the employee, at the time the notice is provided, to its significance and to provide any instructions needed to access the notice, in a manner that is readily understandable, and
   • Ensure that either (i) the employee has the effective ability to access the electronic medium providing the notice, and that, at the time the notice is provided, the employee is advised that he or she may request and receive the notice on a written paper document at no charge, and that, upon request, the notice is provided at no charge; or (ii) the consent requirements of Reg. Section 1.401(a)-21(b) are satisfied.

Employers who want to meet the "notice-and-access" safe harbor must also provide a Notice of Internet Availability (NOIA) each time a covered document is posted to their website.