TPA

I am having a moment and would appreciate assistance.

Plan is a safe harbor 401k - 3% SHPS + PS allocated based on new comp method.  Each participant in their own group.  Plan document indicates that 1,000 hours is required for a PS allocation.  A terminated participant worked less than 500 hours during the year.  Can the terminated participant receive only the 3% SHPS or must he receive at least the minimum gateway?

The terminated participant will need to receive the gateway.  Typically, plan documents have provisions to address the issue you just outlined.  It's important to have the appropriate plan language in place.

Good Luck!

And if you are using a Prototype Doc or a Prototype formatted VS doc, the language ETA refers to will be in the BPD, most likely not in the AA.