Safe Harbor Notice

If HCEs are not eligible for the SH contribution are they required to receive the notice.  Everything I can find just says "to those eligible to participate".  Is that "eligible to participate in the SH benefit"?

I am thinking of adding it to my default one person plan design so that when the sole prop calls me today and says I have an employee (who I never heard about before) entering 7/1, it doesn't hose up the entire plan for the year.  (Of course it doesn't help the guy who says, "employee who entered 4/1")

No consequences to Plan operation/Notice requirement until a Maybe Notice is required prior to entry of the new Employee.  Kind of a chicken soup thing.

Thanks

The term "eligible employee" used in the notice requirement under 1.401(k)-3(d)(1) is defined in 1.401(k)-6 as "... an employee who is directly or indirectly eligible to make a cash or deferred election under the plan for all or a portion of the plan year."

Interesting idea, but I think you would have better results using prior year testing instead.

Thanks very much.