Non profit wants to establish a safe harbor matching k plan eff 7/1/2006 that also may include a discretionary nonelective contribution.

Questions: (1) Is a mid year safe harbor k permitted even though employees had non-ERISA 403(b) available to them before?
(2) Can the plan be effective 1/1, but SHMatch eff 7/1/06 to eliminate proration of 415 and 401(a)(17) limits for short plan year?

Thanks for any help.

my guesses

1. existance of 403b shouldn't matter. it would if you were talking about a SIMPLE.
ERISA Outline Book also says an HCE may participate in more than 401k without effecting ADP Safe harbor, though ACP could be a problem. 11.527 2005 edition

2. since you can add a safe harbor feature to an existing profit sharing plan, there should be no problem having an effective date of 1/1 and 'adding' the safe harbor as of 7/1

Thanks for the feedback Tom. The plan would be a match. Isn't that an ACP issue?