I have a 401(k) safe harbor plan where the Employer chose the 3% to all eligibles. I have a participant who terminated in February with 280 hours. Do I have to give him the safe harbor $? Can you restrict the 3% to those over 500 hours who terminate? I know this should be fairly simple, but I haven't been able to find anything... Everything I find says you cannot have a 1000 hour or last day rule for safe harbor, but does not specifically say if I can exclude terminees with <500 hours. Any input is appreciated.

Everyone gets 3% no matter how much service unless the plan to excludes persons who have not met permissible age and service requirements and the person never go into the plan. Once the person gets in, the person gets 3% per year without condition.