Determine if SH plan annually

[Basically]

I have never given a client the option, but a financial advisor is asking the question...

Can the plan sponsor decide year to year if their plan is a SH plan or not?  and if so, how does this work?

I know that to be a SH Match, for an existing plan they must decide prior to 1/1 of the new plan year... but a plan can switch mid year to a SH plan by 12/31 if they add a 3% NEC SH contribution (after 12/31 if the NEC is 4%).  Ok, say they did that... that would be amending the plan which would mean the plan is now a SH NEC plan moving forward.  To go back to a non-SH plan, well, another amendment switching the plan back?   I'm getting dizzy just thinking of amending the plan each year.  But.. is that how it is done?  Or maybe I am totally off... you can't do this year to year.  

[Bill Presson]

Of course you can do SHNEC each year but you do have to do an amendment. As you note, you can amend to 3% by 11/30. If you want the next year to start off NOT a SH, just include that in the 3% amendment by saying it’s only for XXXX year. So one amendment per year. 
 

Now I think that’s a real PITA but it can be done. Participants might not like it so much.