Safe Harbor 401(k) with immediate entry for deferrals and a 1 year wait for 3% Safe Harbor

[HarleyBabe]

Question if a plan chooses to amend their safe harbor to have a 1 year wait, but leave the deferral portion with immediate entry, do we need to test those individuals in the ADP/ACP because they didn't receive a safe harbor for not meeting the service requirement yet?

What other pitfalls are there for putting a one year wait on the safe harbor other than the top heavy concern which would negate the 1 year wait we are aware of.

[Tom Poje]

you would have to test that group of ees, but it would be rare to have an HCE in the group