401k Plan with 50% of first 5% deferred, capped at 2.50% - written in the document

Can the Plan be amended by 12/01/04 for 2005 for 3% Safe Harbor and Employer Match?

Sorry - what I meant to say was
Can it be amended for 2005 to have a 3% Safe Harbor and eliminate employer match.

since no one has accrued for 2005 you can always amend to take out match. (or at least make it discretionary, capped at 4% of comp.

you can also add the safe harbor feature, need to give notice by Dec 1 (at least preferably by that date to be on the safe side)

Thanks Tom

Why would a discretionary match have to be capped at 4% of pay? Is this a Safe Harbor rule?

I think the employer is looking to change his funding from er match to only a 3% safe harbor nonelective

Yes, the 4% cap is required under the safe harbor rules.