SAFE HARBOR PLAN - mid year?

[Pammie57]

Can a current regular 401k plan " convert" mid year to a SH plan? If so, do they go back and match the deferrals prior to the date the SH provision is effective? If not, then would there be testing for part of the year? I have looked this up many ions ago and I think they can amend if there are at least 3 months left in the year, but the specifics elude me..... and it is tax season in my world right now..... c'mon April 19....

[Belgarath]

No. Now, if it were an existing PS plan, for instance, that was ADDING a 401(k) provision, then yes. But for an existing 401(k) plan, no.

Now, you might be able to get around this by amending the plan year, but that's a separate issue altogether.

[Tom Poje]

the cite is 1.401(k)-3(e)(1) ... the rules of this section are adopted before the first day of the plan year...