I was wondering if a plan that does the Safe Harbor 3% amount for 2001 could have a last day rule (they are doing Safe Harbor so they automatically can pass ADP/ACP). Also, are there any special rules for Safe Harbor regarding hours worked? Example: an employee hasn't worked 1000 hours and the document requires 1000 hours for an employer allocation - for normal matching and PS contributions they wouldn't be eligible but would they for Safe Harbor? THANKS!

The 1000-hour rule and last day rule which can apply to profit-sharing plans in a non-standardized plan cannot apply to the safe harbor non-elective or matching contribution. Vide Notice 98-52.