by MHA

Three annual notices must be given to all plan participants no later than 30 days prior to the beginning of each plan year. For calendar year plans, this deadline is Dec. 1. The notices listed below are each separate legal requirements, but a plan that is subject to more than one notice may use a single notice to satisfy the requirement.

• Safe Harbor Notice: A plan that uses a safe harbor method to avoid annual ADP/ACP nondiscrimination testing must provide a safe harbor notice to each participant and employee who is eligible to participate in the plan. The types of safe harbors includes dollar-for-dollar matching on the first 3 percent of deferrals and 50 percent on the next 2 percent, a 3 percent non-elective contribution, or the new qualified automatic contribution arrangement (QACA) created by the Pension Protection Act.
• Qualified Default Investment Alternative (QDIA) Notice: A plan that provides for participant-directed investments and has a default investment option must provide a QDIA notice if the plan fiduciaries are seeking protection from lawsuits by plan participants who are defaulted into this option.
• Eligible Automatic Contribution Arrangement (EACA): A plan that allows for automatic enrollment but includes a provision allowing participants to opt out and withdraw deferrals within the first 90 days after being enrolled must provide a notice describing the terms of the EACA.

Finally, defined contribution plans that implemented a waiver of the required minimum distributions for 2009 are reminded that the Internal Revenue Service (IRS) issued sample amendments, and transition relief for certain actions taken on or before Nov. 30, 2009. Beginning Dec. 1, 2009, each plan must have implemented a policy regarding the handling of minimum distributions, including adoption of plan amendments which is required at the end of the 2011 plan year.