Employer securities as matching contributions in safe harbor plan

[Guest W Waldan Lloyd]

Employer wants to make matching contributions to a safe harbor 401(k) plan in the form of employer securities. I don't see this as a problem, except that the employer wants to contribute employer securities to only some employee accounts and cash to all others. Assuming this contribution arrangement can be structured to satisfy 401(a)(4), anyone see any problem with the safe harbor 401(k) rules? The regs appear to be silent on this. They only discuss matching contribution amounts, not form of match.

[Guest Not such a bad guy]

Trust must alow for this, PPA allows employees to divest of employer securitiesover 3 year period, so it may not have the desred effect, also if they are only going to make it avaiable to a couple of particpants you have to watch effective availabilty violations.