What is a requirement for introducing a matching safe harbor contribution during the initial year?

Introducing a matching safe harbor contribution during the initial year of a 401(k) plan has specific requirements. One crucial requirement is that there needs to be at least three months left in the plan year. This time frame allows the employer ample opportunity to engage participants about the matching contributions and provides a sufficient duration for employees to benefit from the match.

This requirement ensures that both employees and the employer can effectively implement and take advantage of the new matching contributions, thus fostering participation and ensuring compliance with regulatory expectations for safe harbor provisions.

The other options do not correctly align with the requirements set for introducing these contributions in the initial year. For instance, there is no necessity for a plan to have been established a year in advance, nor is it accurate that safe harbor contributions are precluded in the initial year. Furthermore, while timely employer contributions are important, they do not specifically dictate the introduction of safe harbor contributions within the first year; rather, it's the advanced planning that enables the contributions to be operationalized effectively.