Switching SH for 2020

Hi

My apologies if this was discussed before.

Existing 401k plan with SH match. Looking into adding a CB plan for 2020

Can it be switched to non-elective for 2020 and if yes 3% or 4%?

Any other issues not asking?

Thank you

My understanding is that you cannot make that change mid-year.

1 hour ago, CuseFan said:

My understanding is that you cannot make that change mid-year.

Agreed.

And to follow-up on that, it's my understanding if the existing 401(k) was NOT a Safe Harbor, you could switch it to the 3% NE prior to 12/1, or 4% NE after 12/1, and add the Cash Balance.  Does that sound correct?

Yes that sounds correct chipwood. But think you would need to add the 4% between 12/1 and 12/31 in that case.

I'm not sure I understand the logic of the IRS that you can add a SNE to 401(k) that doesn't have one but you can't give a notice discontinuing the SHM, while still making all matching contributions from PYB through the 30 day notice, and then add SNE. But I agree that current guidance seems to suggest you can't change from match to NE during the year.

Thanks Lou for reviewing & opining.