If you’re strapped for cash, you are permitted to reduce or suspend certain employer contributions to 401(k) plans. Determine whether you have this flexibility. If so, then be sure to comply with notice requirements of any contribution change. Under a safe harbor rule, you can cut back or suspend certain employee contributions as long as you give a supplemental notice form to employees explaining your action and that they have the opportunity to change their elective deferrals for the rest of the year.
New blog post today! Preparing for Economic Changes: Post-Pandemic Business Picture
Alert: Follow coronavirus-related federal tax changes through the IRS’ Coronavirus Tax Relief center.