Safe Harbor mid year

[401kay]

We're taking over a client's plan starting next year and looking over their 2022 information, and it looks like they added a Safe Harbor match mid way through the year. It does appear that the date they added the Safe Harbor is the same date as the effective date for deferrals. Even though the plan has a 1/1/22 start date. I always thought mid year Safe Harbor wasn't acceptable, but I'm wondering if this structure makes it ok?

[John Feldt ERPA CPC QPA]

As long as there are deferrals for at least 3 months in the plan year, it can be safe harbor.

For the initial starting of deferrals and safe harbor match, an additional requirement is that employees must receive a notice by the time deferrals begin for that plan year.
So in your case, as long as the deferrals and safe harbor started together, and the safe harbor notice was provided by the date deferrals began, and assuming the plan document was executed by that same date, then the timing requirements appear to have been met to allow the plan to be safe harbor. 

[401kology]

Agree with John here, happens quite frequently when there is a new plan established mid year.  Plan drafters will use the 1/1/2022 effective date for the plan as a whole so there is not a short plan year and hence prorated 415 and comp limits, and will have the deferrals and match start no later than 10/1 of the year.  Alternatively, they could have adopted a 3% safe harbor nonelective for the full year, just depends on the other plan provisions and overall design.