Term of a Safe harbor plan

[doombuggy]

Notices were given within the required period and the terminaiton date has passed. I just got the census info and an calculating the safe harbor for the short plan year. the plan sponsor will be paying the S/H. When I run the ADP test, it shows as passing since the plan is a S/H plan. If not for the S/H, it would fail. The have the 3% non-elective.

they still get the automatic pass on the ADP since they are making the contribuiton, correct?

[Tom Poje]

well, the regs 1.401(k)-3(e) says a safe harbor plan has to be 12 months long. however (paragraph 4) it could be less if in its final year provided either

(i) plan satisfies paragraph (g) [the rules applicable to suspension of match] or

(ii) termination is in connection with transaction described in section 410(b)(6)© or employer incurs a substantial business hardship/