Amending Eligibility for Safe Harbor 401(k)

[Guest ebailey]

We currently have a prototype SH plan that defines eligible employees as anyone who is 21 (no service requirement). We would like to change the service requirement to 3 consecutive months of employment (plus 21 years old) and have enrollment start the first day of the quarter following such eligibility. Will this change only apply to new employees? Can this apply to current employees who are not yet 21 years old (would be a small number since we're only talking 3 month change). When can we make the change (is this a mid-year change that isn't permitted under SH rules?) The 401(k) regs don't seem to address this. Or is it simply - as long as we change to an "approved" SH eligiblity requirement (no more than 1 year service and 21) - we're ok even if we're making eligiblity more restrictive....

any insight would be appreciated.

thanks

[cdavis25]

I think you are ok. It will count for anyone that is not a participant yet; however, you will need to count their past service towards the 3 months.