I am with Jakyasar, I did not realize you could boot someone out of a 401k plan if the new eligibility criteria was never met by that employee.
What if the plan required the 21/1 from the start and the employee met the criteria and joined the plan. Later the the employee switches to part-time (less than 1000 hours a year). Then the employee is still eligible for deferrals and the safe harbor contributions, correct. The employee just wouldn't be eligible for the contributions with allocation conditions?
