Amending a Safe Harbor Plan

[Archimage]

I have a plan that has a SHMAC. It also has a pro rata profit sharing formula with 1000 hr/last day rule. Is there any problem with respect to the safe harbor rules for amending the profit sharing formula before the end of the year? I can't find anything that says I can't do it but for some reason there is something in my head that tells me that this is not allowed due to the safe harbor rules.

[JanetM]

I don't see that you have a problem if you amend plan with last day rule before 12/31. PS contributions are discretionaly. Why not amend the plan to say the PS is discretionary rather than specific formula?

[Archimage]

It is discretionary, but the formula is a pro rata formula. Thanks for your input.

[Bird]

I seem to recall someone or other opining that since the PS contribution has to be mentioned in the SH notice, you're somehow locked in to the formula. I don't think so; I think you can change it, subject to the usual hours/last day rules.

[Guest geschaft]

If an employer with a safe harbor plan is adding in additional in-service provisions during the year, would you suggest providing an updated safe harbor notice to the existing participants, as well as the ones, who are meeting eligibility later in the year?