Treas. Reg. 1.401(k)-3(e) indicates that SH nonelective contributions must remain in effect for an entire plan year "to satisfy the requirement of 401(k)(12)". There is limited relief from this rule for terminating plans and for SH matching contributions. We would like to terminate the SH nonelective contribution in 2009 (and only pay what has been accrued to date). Is this permissible? I realize that the safe harbor protection under 401(k)(12) would no longer apply.

Might this be a case of expressio unius est exclusio alterius, as BTG might ask?

Does the expression in the regulations allowing for stopping safe harbor mandatory contributions mid-year for terminating plans and how to stop mid-year safe harbor matching contributions for an ongoing plan mean that the IRS implied that there is no way to stop mid-year safe harbor nonelective contributions for an ongoing plan?

There are several recent threads on these Boards where there is some speculation but more caution expressed.

Recently ASPPA submitted comments to Congress recommending that relief was needed from the position that the only way to cease the requirement for for a safe harbor non elective contribution mid year is to terminate the plan. That strongly suggests that the IRS more than "suggested" that there is no way to stop mid year.