Discontinue SH Match, start a non-elective SH?

I was looking back in the volumes of CARES Act webinars and other material on discontinuing safe harbor match mid year and I think I know the answer to this one, but just want to double check that I did not miss something along the way. 

If a plan discontinues the safe harbor match mid year due to financial downturn, can they amend before the year to a safe harbor non-elective (as permitted under the SECURE Act).  The information that I have from when the CARES Act first came out was that this was not permitted, but again, there have been so many updates I just want to be sure this is still a "No".

Thanks very much.

The popular consensus seemed to be that it would not be permissible. However I don't think there has been anything official one way or the other.

Ok, great, that's what I thought but appreciate the confirmation.  Thanks very much.

The SECURE Act put the restriction into 401(k)(12)(F). I don't think the IRS has the authority to change it.  However, if they haven't stopped the SH match yet and are willing to change plan years, they can switch to the SHNEC after the short plan year.  Under 1.401(k)-3(e)(3), they can stay safe harbor for the short plan year if they are safe harbor for the plan year before it and the 12 months after it.  It doesn't require that they be the same safe harbor for all of those plan years.

If they already stopped the SH match, they can change plan years and be SHNEC going forward as long as the first SHNEC plan year is 12 months.
 

Quote

 

(F) Timing of plan amendment for employer making nonelective contributions

(i) In general

Except as provided in clause (ii), a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph (C) shall apply to the arrangement for the plan year, but only if the amendment is adopted—

(I) at any time before the 30th day before the close of the plan year, or

(II) at any time before the last day under paragraph (8)(A) for distributing excess contributions for the plan year.

(ii) Exception where plan provided for matching contributions

Clause (i) shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph (B) or paragraph (13)(D)(i)(I) applied to the plan year.

(iii) 4-percent contribution requirement

Clause (i)(II) shall not apply to an arrangement unless the amount of the contributions described in subparagraph (C) which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least 4 percent of the employee's compensation.