Use of ESOP stock for safe harbor 401(k) contributions

[Guest Janet VanAlsten]

Can allocations of ESOP stock from an existing ESOP Trust be considered as "contributions" to meet the 401(k) safe harbor for matching contributions?

[RLL]

Allocations of stock representing current employer contributions to an ESOP may be used as 401(k) safe harbor contributions if all applicable requirements for the safe harbor are satisfied.

[Trekker]

Eight years later, I am asking a similar question: Client (S-corp if that matters) maintains an ESOP and a separate 401(k). May the 3% non-elective safe harbor contribution be made to the ESOP in stock, or must it be made in cash?

Thanks for any cites.

[RLL]

Cash or stock (of equal value).

IRC section 4975(e)(7) .... an ESOP is designed to invest primarily in qualifying employer securities.