2 year eligibility with a Safe Harbor 403(b)?

[Lori H]

Can a plan with a 2 year eligibility/age 21 on the match amend to have a Safe Harbor enhanced match of let's say 100% up to the first 6% deferred?

Thanks

[MWeddell]

No, I don't think so. You would have to change the 2 year eligibility for the match to be just 1 year.

Through a cross reference from Code Section 403(b)(12), the 401(m) rules apply to the employer matching contributions made to the 403(b). This includes the safe harbor rules. To satisfy the 401(m) safe harbor rules, all NHCEs who are eligible to make 403(b) elective deferrals generally must receive the enhanced safe harbor match. There is an exception because one can permissively disaggregate employees who as of the last entry date of the plan year have < 1 year of service and are < age 21 and test them separately (of course no ADP test for 403(b) deferrals). However, there is nothing that would allow you to disaggregate those with < 2 years of service and not give them the enhanced safe harbor match.