I am drafting a Safe harbor 401(k) with 3% non-elective contribution. The employer wants to include an in service withdrawal provision to allow participants who are 60 and still employed to make withdrawals from their accounts. Our document is set up to list the accounts from which they can withdraw funds. Is there anything preventing withdrawal of safe harbor contributions?
Thanks.

Safe Harbor contributions are restricted to the same rules as deferrals. Age 60 is not a restriction on deferrals.

Before the question comes up, Safe harbors have a further restriction - no hardships. see Notice 98-52 IV.H

Yeah, I thought SH conts were treated as QNECs. No hardships.