Safe-Harbor Plan - Employee Transition from Full-Time to Part Time

Our client maintains a safe-harbor matching 401k plan.  A long-time employee (HCE) transitioned to a part-time role and is now working less than 1,000 hours per year. (The eligibility requirement listed in the plan document.)

Is this employee still eligible to make 401k deferrals and receive the safe-harbor match or excluded because he no longer meets the eligibility requirements?  The document does not address this situation - only that the eligibility requirements are Age 21 and 1000 hours of service.

Thank you for your feedback!

22 minutes ago, TN CPA said:

Our client maintains a safe-harbor matching 401k plan.  A long-time employee (HCE) transitioned to a part-time role and is now working less than 1,000 hours per year. (The eligibility requirement listed in the plan document.)

Is this employee still eligible to make 401k deferrals and receive the safe-harbor match or excluded because he no longer meets the eligibility requirements?  The document does not address this situation - only that the eligibility requirements are Age 21 and 1000 hours of service.

Thank you for your feedback!

 

Barring any (unusual) language, once a participant always a participant.  He can continue to defer.

1 hour ago, Larry Starr said:

Barring any (unusual) language, once a participant always a participant.  He can continue to defer.

And receive the safe harbor matching because there can't be any hours requirement once the eligibility is met. I know that was implied.