Issues involved in converting a safe-harbor 401(k) to a simple 401(k)?

[chris]

Client has a safe harbor 401(k) with the 3% nonelective contribution. Due to business downturn, client can't handle the required 3% contribution next year. The safe-harbor 401(k) is top heavy. Almost none of the employees have deferred. Potential alternative is to convert to a simple 401(k). Doing so would cut out the top heavy contribution and if matching contribution is chosen, the employer match should be minimal given the history of no deferrals. Any issues???

[Gary Lesser]

None. However, the amendment if done now would require SIMPLE notices to be given on Nov 2 if knowing all participants on January 1 is important.