Entity Adopting Safe Harbor 401k Mid-year as Participant Employer

I've tried and failed to find out if an entity with no plan currently can adopt the Plan mid-year. Parent bought the stock recently, and are within the transition window but they want to add them mid-year,  2016-16 references amendments, but I think that's different then adding participating employers (i.e., adding a Participant Employer is not an amendment and so doing so is not covered by 2016-16).

My own personal conclusion is as long as they are on by 10/1 it should be ok because they would be able to set up their own SH 401k plan in that scenario but I can't find anything at all on point.

1 hour ago, austin3515 said:

adding a Participant Employer is not an amendment

That is not necessarily a universally held opinion. The other point of view would be that the employer, i.e. the controlled group, has already adopted the plan, and while it may take the form of a participating employer agreement, it is really an amendment to allow a previously-excluded class to participate.

That said, I don't think there is a problem with amending a safe harbor plan to bring in a class of previously-excluded employees mid-year, and I agree it would be advisable to do it before 10/1 to cover yourself under either interpretation. 

So much of what we do is semantics, right? LOL.  Thanks!!

Not sure why I kept typing "Participant Employer".  I guess I type the word Participant so much my fingers are on autopilot!

There are worse words for your fingers to be on autopilot!