Another reason to hate SIMPLE 401k

[Flyboyjohn]

Intuitively I would think that the employer match under a SIMPLE 401k should be treated as a QNEC subject to in-service distribution restrictions but can't find any support, anybody have a cite?

[Tom Poje]

well, 1.401(k)-3(b) safe harbor contributions are referred to as 'qualified nonelective contributions'

1.401(k)-3© safe harbor matching contributions are referred to as 'qualified matching contributions'

10401(k)-4 SIMPLE Plans

1.401(k)-4(e)(3) the contributions are referred to as 'matching' contributions

and

1.4019k)-4(3)(4) the contributions are referred to as 'nonelective' contributions

so it does not appear the hardship rules apply, since neither of the SIMPLE contributions are defined as 'qualified', even though the yare fully vested.