Leaderboard

Update: The account has been split according to the terms of the QDRO and the alternate payee now has an account under her own name and social security number. Both parties have completed their respective distribution forms and by Thursday this account will be history. Thank you again to all the participants in the thread.

Yup! Go right ahead and make the change.

Some things for the OP to consider: Failure to follow the plan document disqualifies the plan. That's why we have EPCRS. A safe harbor plan can't be amended mid-year to make someone who is eligible for the SH contribution become ineligible for it. 1.401(k)-3(e)(1) and specifically mentioned in Notice 2016-16 III.D.2 One of the requirements for the non-elective safe harbor is that all NHCE's who are eligible to defer must receive the SH contribution 1.401(k)-3(b)(1). 411(d)(6) prohibits amendments that reduce benefits that have already accrued. So, no retroactive amendment to make someone ineligible for deferrals or SH.

No issue whatsoever.

Of course that can't be done. Employees don't have the option of "waiving" their contributions, otherwise employers would be "encouraging" such an action all the time. Frankly, who cares what the employer is "thinking". They don't know the law; that's why they pay us. The employer has to be told that this is just not legal. No more than trying to force an employee to pay back a loan made to the participant by the employer (not the plan) from the retirement plan distribution to that employee.

you could permissively aggregate plans 2 and 3 If you aggregate for coverage you must aggregate for ADP testing as well. (or vice versa) the key term is 'permissive' there is no requirement to do so. if plans pass on their own then there is no need to combine. even though you can't aggregate a safe harbor and non-safe harbor plan for other purposes, there is one avg ben pct test. everything gets combined