Non-Standardized Safeharbor plan

[Guest halencourt]

Can a Safeharbor plan use a last day of the plan year provision provided under a non-standardized prototype? My thinking on this is no....but not sure.

[Tom Poje]

there can be no hours/last day restriction on the safe harbor contribution. You can have a last day or hours requirement on any additional contribution.

note, that is one of the big differences between a QNEC and the safe harbor.

you can limit the safe harbor to only those who have completed a year of service and age 21 (ELIGIBILITY) if the plan provides for immediate eligibility to defer, but once an ee meets these requirements he/she must receive a safe harbor even if their hours drop below 1000.