May a safe harbor 401(k) have immediate deferral and a six-month eligibility for the safe harbor matching contribution?
Rev. 11/16/07, E-mail Alert 2007-15

Yes. The otherwise excludable employee testing is done for the employees who are not eligible to receive the safe harbor contribution, i.e., those who have not satisfied the six-months eligibility rules must be tested for ADP and ACP. It is likely that they will all be nonhighly compensated and testing becomes a moot issue for them. It is important to remember the top heavy issue above.