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Yes, you are missing something really big. The SH match is required under the terms of the plan. Failure to give the participants the contributions they are entitled to receive is an operational failure that needs to be corrected to avoid disqualification. You don't need to do ADP/ACP testing, you need to correct the operational failure. Stick a fork in me, I'm done.

It's most likely a valid way to make a change. I'd guess the scenario of passing the information to employer/payroll to make the change is where the hang up is. I know of a major player in the 401k market that sends a deferral change report to the employer for handling. The employer has to go in and get the report and pass on. If the employer doesn't get the report I can see where the deferral doesn't get changed....

This is the second post in a couple of days in which someone "went online" or "to the investment company" and changed deferrals. The first thing I would do is make sure this is a valid way to make a change.

did a little more research, at least at the 2009 ASPPA Q and A 48-53 (a whole bunch of questions on this one!) the IRS voiced an opinion such comp is eligible 48. An employee terminates in December 2009. A final payment of salary due for services is made in January 2010. The plan does not use the “first few weeks” rule in the IRC §415 regulations to treat the January payment as made in 2009. The plan year is the calendar year. The plan includes a section 401(k) arrangement that defines compensation eligible for deferral to be section 415 compensation. Is the individual included in the 2010 ADP test, even though he terminated employment in the 2009 plan year? Yes. Since he could defer out of the compensation paid in January 2010, he is an eligible employee under the 401(k) arrangement for the 2010 plan year. The 401(k) regulations do not treat active and former employees differently 50. Suppose instead that the plan is a safe harbor plan that provides the safe harbor nonelective contribution. Is this individual entitled to that contribution? Yes. Since, as discussed in Q-1, the individual is treated as an eligible employee for 2010, he is entitled to a safe harbor contribution. However, if this individual is an HCE, and the plan does not provide the safe harbor contribution to HCEs, then no safe harbor contribution is made on his behalf. The same answer would apply to a safeharbor match if the individual made elective deferrals out of the 2010 compensation. ..................... Robert Kaplan gave an ASPPA presentation the following year and included this stuff in his talk http://www.asppa-net.org/Portals/2/Defining Compensation in Qualified Plans.pdf

Freddie the Unlucky is hired 1/3/2017. age 30 or 40, depends on the age of the lady he is talking to at the bar. he works 1000 hours in 2017. the regulations say 6 months after meeting 1 year of service or age 21.but his next entry date is 1/1/2019

The preamble from the 2009 Final 430 regs reads in part: "These regulations clarify that the rules for short plan years apply for the year of termination by specifying that if a plan terminates before the last day of a plan year, then, for purposes of section 430, the plan is treated as having a short plan year that ends on the termination date. As a result, the minimum required contribution for such a plan is determined based on that short plan year. If a plan terminates before the date that would otherwise have been the valuation date for a plan year, then the valuation date for the plan year must be changed so that it falls within the short plan year. " The actual language of the regs essentially repeats the above, as you would expect: 1.430(a)-1(b)(5) Terminated plans (i) Short plan year. If a plan’s termination date occurs during a plan year but before the last day of a plan year, then, for purposes of section 430, the plan is treated as having a short plan year that ends on the termination date.