Safe Harbor 401(k) Plan Change

We have a Safe Harbor 401(k) Plan client that currently has a three percent nonelective contribution and wants to change to a safe harbor match contribution.  I referenced the EOB and it referred me to Notice 2016-16.  Under Notice 2016-16 Mid-year Changes to Safe Harbor Plans and Safe Harbor Notices, I see where this might be possible but don't find any specific examples that address this scenario.  I feel I could argue either way - for or against and would like input from anyone that may have some insight/advice?

Notice 2016-16 specifically prohibits a mid-year change to the type of safe harbor plan.

You can make this change, but only at the beginning of a plan year.

23 hours ago, hsctpa said:

We have a Safe Harbor 401(k) Plan client that currently has a three percent nonelective contribution and wants to change to a safe harbor match contribution.  I referenced the EOB and it referred me to Notice 2016-16.  Under Notice 2016-16 Mid-year Changes to Safe Harbor Plans and Safe Harbor Notices, I see where this might be possible but don't find any specific examples that address this scenario.  I feel I could argue either way - for or against and would like input from anyone that may have some insight/advice?

And....make sure you understand that a match won't count for top heavy rules, so if the plan is top heavy, they are STILL going to have to make the 3% contribution IN ADDITION. That is why we have TONS of 3% non-elective and (I think) exactly TWO plans that use the match.  Just in case this applies....

I was of the understanding that a Safe Harbor Plan satisfied Top Heavy with a traditional Safe Harbor match as long as there are no other employer contributions made for that year? 

9 minutes ago, hsctpa said:

I was of the understanding that a Safe Harbor Plan satisfied Top Heavy with a traditional Safe Harbor match as long as there are no other employer contributions made for that year? 

True, but our plans are almost all providing substantial additional benefits to the owners. The pure "safe harbor only" plan is rare when looking at small business.  If all you are looking for is the deferral and match and nothing else, then this will work, but not until next year!  As I said in my first response...."Just in case this applies".  If it doesn't apply, it doesn't apply.  But I've seen lots of people FORGET about the top heavy issue, so just don't forget! ? 

Thanks, Larry.  I missed the just in case and focused on me misunderstanding!