working less than 500 hours and benefiting under SHNEC

Under a 401(k) safe harbor plan, a long-time participant has semi-retired. This participant now works only 200 hours annually and has agreed to do the same for the next 5 years or so. Does this participant continue to benefit each year in the employers safe harbor non-elective contribution, or is there a way to exclude this participant based on hours.

any NHCE who is able to defer must receive the safe harbor, though most plans provide safe harbor to HCEs as well.

Does he want to defer?  You can exclude his job title from the plan altogether.

Tom beat me to it.

Unfortunately, you cannot have allocation conditions on safe harbor contributions. Being that he is already a participant, if he works, he gets the contribution. 

Gotcha. It is an NHCE. Thanks to all for your responses.