During our recent Safe Harbor Notice discussion we explored how the safe harbor match could be stopped during the plan year. Over Before It Began: Eliminating 2009 Safe Harbor Match After Notice is Distributed shares the relevant regulations that discuss the procedure to reduce or eliminate the safe harbor matching contribution and the information required for the supplemental notice:

So what happens if you (or your employer) distributed a safe harbor notice last October or November that stated there would be a safe harbor matching contribution in 2009, and now, with the worsening economy, the employer needs to rescind that promise of making a safe harbor matching contribution in 2009. Treas. Reg. 1.401(k)-3(g) and Treas. Reg. 1.401(m)-3(h) permits a safe harbor matching contribution to be changed or eliminated after the safe harbor notice has been distributed.

Links to the relevant regulations:

• Treasury Regulation Section 1.401(k)-3 Safe harbor requirements
• Treasury Regulation Section 1.401(m)-3 Safe harbor requirements