Secure Act SH Nonelective - SECURE Act

Can I set up  a new profit sharing only Plan effective 10/1/2020, and then have the 401(k) and SH Nonelective effective 11/1/2020?  This would ensure that my plan year is at least 3 months.

I bleeive the answer is no.  So  many articles that say "the plan year still must be at least 3 months" are not specific enough, and really the same old requirement that CODA must be effective for 3 months still applies.  And any the SECURE Act amends the statutes, and it is the reg that includes the 3 month minimum.

Anyway, just want to make sure we are all on the same page that in order for a new plan to be a safe harbor, it must be established and accepting 401k by 10/1.

This is hysterical - this article directly on point was in my in box last night!

https://ferenczylaw.com/flashpoint-the-three-month-rule-and-retroactive-safe-harbor-elections/

Thanks Derrin!

Derrin, I'm thinking of a number between 1 and 10 ...

Dave, has anyone in the history of Benefitslink ever had more likes than posts besides Derrin?

Haw! I was only referring to the way Derrin seemed to be able to know what was in your mind!

He's the national leader in 401ks as far as I am concerned.  There's no one quite like him!