C Corp to S Corp - Safe Harbor 401(k)

[No Name]

Have a C Corp on a fiscal year that will elect S Corp status and become calendar year filer. I'd like to match Plan Year to Corporate year (calendar).

Plan in place is a 3% SHNEC. Do I lose safe harbor status because of a short plan year? Don't think it will be an issue because of good participation, but you can never take anything for granted in this biz.

[austin3515]

No problem... Long as the SH contributions cover the entire year, short or not, it's okay.

[Bird]

The new 401(k) regs say that the short year has to be flanked by two full safe harbor years.

[wmyer]

So if the short plan year is a 2005 short plan year, and you want to use final regs that are generally effective 1/1/2006, that's okay, but you will have to be in compliance with all aspects of the final regs for the 2005 plan year.

[No Name]

Great stuff, guys and gals. Thanks.