SHNE to SHM

Our client has maintained a SHNE 401K as he has made discretionary profit sharing contributions.  

On November 1st, the client asked to change from SHNE to SHM effective 1/1/2021 as he is not intent on making a profit sharing contribution for quite awhile.  A Safe Harbor Notice of Matching contributions was delivered to the participants prior to November 30th.

Question is, the participants that received the SHNE in the past, would they be due any employer safe harbor?

55 minutes ago, thepensionmaven said:

Question is, the participants that received the SHNE in the past, would they be due any employer safe harbor?

It's not a question of who received what in the past.  It's a question of whether the SHNE is hard-coded for 2020 or set up as a "maybe" type where it could be amended and notice given by...yesterday, or is it today...to adopt the SHNE provision.

I assume you mean to adopt the SHM, so nothing further is given to the participants that are not contributing.

1 hour ago, thepensionmaven said:

I assume you mean to adopt the SHM, so nothing further is given to the participants that are not contributing.

It would seem you have a SHNE contribution due for 2020.

You have a continuing annual Safe Harbor Match notice to all eligible participants, contributing or not.

Starting in 2021 you have have no employer contribution requirements for non contributing participants assuming the only ER contribution is the SH Match.

If that's what you mean by "nothing further given"

19 hours ago, thepensionmaven said:

I assume you mean to adopt the SHM, so nothing further is given to the participants that are not contributing.

Not what I meant.  I don't see anything unclear about what I wrote.  You said the client has a SHNE - Safe Harbor NonElective.  In my world, that means everyone gets 3%.  (Subject to some potential exclusions, such as HCEs, and whether it is set up as a maybe as I described.)