Safe Harbor 401k Plans - Proposed Regs for Safe Harbor Match eligibility

[Guest Ducks]

I read in a recent post that there may be regs that do not allow for eligibility provisions on any Safe Harbor Match contributions, would that apply to Safe Harbor Non-Electives too? Can someone point me in the right direction to read more about it...

Thanks for any help.

[Tom Poje]

it has never been possible to have eligibility conditions on a SHNEC (except for the 'otherwise excludable option).

and you could never apply eligibility to the Basic match or enhanced match either.

It is only the discretionary match that the propsed regs say no more eligibility condition.

[Guest Ducks]

Thank you much.

Ok, I understand then a safe harbor match kicks in as soon as eligibility is satisified for the 401k arrangement, where the one year max. eligibility requirement is the only way to accomodate a year wait period for the safe harbor match contribution. That prior post was pretty confusing sorry about that. My question should have been worded...

Is it a correct assumption that a non-standardized prototype safe harbor 401k plan, using a safe harbor enhanced or basic match to satisfy contribution requirement, cannot impose a year of service on discretionary match if 401k arrangement allows for immediate eligibility?

Could that type of design be done using a volume submitter?

Any insights are much appreciated.

[rcline46]

The answer is no. A SH match or SHNEC must be given to everyone eligible (and deferring for the match). No exceptions, no end of year rule, no 1,000 hour rule.

Document type does not matter. Only eligibility to defer.