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ha ha ha Mike, you should have posted this under the humor section "the fact that ADP/ACP testing is, relatively speaking, understandable"

Most of the new safe harbor plans we set up do not allow loans or hardships. We don't have any SH plans that delay distribution of deferrals until death or retirement age. But, we do have one SH 401(k) that doesn't distribute the employer contribution accounts until retirement age, death or disability. I agree it can be done, but would recommend that the employer make the extra effort to get a signed zero deferral election from everyone who does not want to defer, or at least keep a log of when each person was given their enrollment forms. With little participation from NHCEs, I would expect that if audited, the DOL or IRS will want to see documentation showing that the NHCEs were really offered the opportunity to defer. Depending on the size of the employer and turnover, delaying distributions until death or retirement age could eventually backfire on them. Those vested terms will increase the participant count and get them closer to large plan filings and an audit.