sh initial eligibility

[abanky]

Can a plan impose a 2 year eligibility to receive safe harbor contributions?

[Tom Poje]

no.

the whole idea is you get a free ride on ADP testing, and the max you can have for deferrals is 1 year. And if someone is eligible to defer they have to get a safe harbor

[abanky]

That's what I thought, Thanks tom

[rcline46]

You can impose a 1 year wait on SH, but if eligible to defer earlier, they are subject to ADP/ACP testing and must receive a Top Heavy contribution if the plan is Top Heavy. Therefore it may not be better to have the wait.