Safe Harbor Non-elective

I have a question one of the client is considering to terminate they 401k plan and they are a safe harbor non-elective setup. Is it possible to terminate the plan as of 12/31/22? If so, how does the Safe Harbor Non-elective contribution work since it can’t be calculated till after the plan year?

Termination date isn't when the plan evaporates. It just means no more contributions for compensation earned after that date. So just do all the stuff you would normally for a 2022 calendar year plan. Then do the distributions and file the final return for the 2023 (short) year.

2 hours ago, Bill Presson said:

Termination date isn't when the plan evaporates. It just means no more contributions for compensation earned after that date. So just do all the stuff you would normally for for a 2022 calendar year plan. Then do the distributions and file the final return for the 2023 (short) year.

Thank you!