Can a one person employer (whether PC, Sub S or Sole Proprietor)-- with no employees -- establish a Safe Harbor 401(k) for himself in order to max out on contributions?

What is your objective? What's the point?

I think what Bill is saying is--why would you need a safe harbor 401(k) in order to max out for this guy? Just set up a regular 401(k), then this guy can contribute $41,000 next year (assuming he's over 50) without any probs. If you're talking about the current year, to get to $35,000, he'll need a PSP and a MPPP.

Suppose you have a 1 person defined benefit plan in 2002. If you add a 401(k), elective deferral only, the client will be able to defer an additional 11,000 (plus catch-up if applicable.) And this figure will rise rapidly in future years. I suspect you may see a lot of these. But you wouldn't want a safe-harbor, because it should be deferral only.

You're right, the safe harbor part doesn't belong there. But under a regular 401(k), he would get the $40,000 max. ER contribution (or 25% of comp.). Plus, since elective deferrals don't count toward annual additions anymore, he wants to add another $11,000 as an EE elective contribution. And that's not counting the catch-up contribution. So he could end up with a $52,000 contribution in this one man 401(k) Plan. Sound feasible?

You're right, the safe harbor part doesn't belong there. But if he sets up a regular 401(k), he could contribute $40,000 (or up to 25% of comp.) as an ER contribution, plus, since elective deferrals don't count toward annual additions anymore, he could add another $11,000 as an EE elective deferral, plus $1,000 as a catch-up contribution. So this guy gets $52,000 in this one man 401(k). Sound feasible?

No, your 40,000 section 415 limit includes elective deferrals. So you are limited to the 40,000, plus the catch-up if applicable. The catch-up does not count towards the 415 limits, but regular deferrals do.