safe harbor 401k with almost no eligibility requirements

[Santo Gold]

If a company adopts a 401k safe harbor with no elibility requirements to make 401k contributions, can they still put a 1 YOS requirement on the ability to receive the safe harbor contribution? Will that jeopardize the automatic passage of the ADP test?

Thanks

[Guest Big Al]

Yes, using the otherwise excludable feature you can require 12 months/Age 21 to get SH.

However my understanding is that you dont get a free pass on TH if you use it.

[Santo Gold]

Thanks for the response. Does that mean that those under 21&1 folks who do not get a s/h contribution might still have to get a 3% top heavy contribution, even though they are not otherwise eligible for any other type of employer contribution?

[Tom Poje]

Big Al's understanding is correct. your plan would still be considered top heavy