FOLLOWING THE TERMS OF THE PLAN (Posted August 8, 2002) Technical Tip 78: The following question and answer were from the IRS Q&A Session at the 2000 ASPPA Annual Conference: A calendar year 401(k) plan has given notice per Notice 2000-3 that it may elect safe harbor status by 12/1/2000 by making a 3% nonelective contribution. The plan calls for a 2% match, payable after year-end. If the 3% safe harbor election is made, can the employer forgo the 2% match? Response: Not if the match is required under the terms of the plan. View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.