QACA Mid Year Change?

[PMC]

Plan utilizing a QACA for 2009 plan year using 3% nonelective to satisfy the 'ER contribution. Question is - can they stop the automatic enrollment portion of the QACA mid-year but continue to make the 3% nonelective for the remainder of the year and remain safe harbor? Or must the plan keep the QACA in tact for the full 12 month plan year?

[MWeddell]

A plan either satisfies one of the 401(k) / 401(m) safe harbor designs for the whole plan year or it is not a safe harbor plan. More specifically, if you meet the QACA 3% nonelective safe harbor design for the first part of the year and then satisfy the older 3% nonelective safe harbor design for the rest of the plan year, this is NOT a safe harbor plan for that plan year.