Safe Harbor 401(k) Document

[Guest amm19]

We just received a new client and are preparing the restated documentation. The good news is the client did sign the intent to adopt. The bad news is the prior documentation that the former TPA put together does not appear to be accurate.

Instead of using the safe harbor notice, the prior TPA actually incorporated the vesting and matching contribution formula into the document itself. Not in a notice. Now the client has informed me they will not be using a safe harbor in 2003 (calendar year plan). How do you handle a restatement in such a case? They have bound themselves to a vesting schedule that all participants will elect if amended. Agree?

Any advice?