Guest SCritchfield Posted December 12, 2002 Posted December 12, 2002 Plan currently has 1 yr and age 21 eligibilty for participation. Client is suggesting changing eligibility for deferrals to immediate but leaving 1 yr wait on match. Doesn't this change the match to non-safe harbor? Thanks!
Tom Poje Posted December 13, 2002 Posted December 13, 2002 not according to Notice 2000-3 Q-10 a plan is not required to provide safe harbor match or nonelective to those 'otherwise excludables' the otherwise excludables MUST be tested for coverage separately. that shouldn't be a problem, but watch out on your a(4) test, etc. watch out for possible top heavy issues. Be careful how you handle HCEs that fall into this group. They would not be eligible for the safe harbor either.
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