Guest Powers Posted March 21, 2001 Posted March 21, 2001 Can a Plan that has immediate eligibility for deferrals apply a eligibility requirement for Employer Contributions (i.e. Safe Harbor Non-Elective or Safe Harbor Match) of "The first day of the Plan Year following completion of 1 year or service" be considered a Safe Harbor Plan?
wmyer Posted March 21, 2001 Posted March 21, 2001 This question is answered precisely in Notice 2000-3, question #10. You are not required to provide the SHNEC or SHMAC to participants under 21 or with less than one year service. But you have to elect to treat them separately for coverage purposes. And the plan must specifically provide that elective contributions on behalf of those employees will satisfy the ADP (& ACP) tests. W Myer
Recommended Posts
Archived
This topic is now archived and is closed to further replies.