When must participants be notified if using a safe harbor plan?

Participants must be notified annually in safe harbor plans to ensure they are aware of their rights and the terms of the plan. This annual notification is crucial as it provides participants with relevant information about their contributions, the employer's matching or non-elective contributions, and the plan's overall structure. The annual notice helps participants understand how the plan operates and the benefits they can expect, thus promoting transparency and encouraging their engagement with the retirement savings process. The requirement for annual notification is a key feature of safe harbor plans, designed to ensure participants remain informed throughout their participation in the plan, enabling them to make educated decisions regarding their retirement savings.