Sometimes business cycles create unexpected challenges and that 3%-6% of payroll Safe Harbor contribution can become an cash flow issue or be deployed in other business critical manners.
Following is a very good summary of suspending or cancelling your Safe Harbor committment during the middle of the year.
Safe Harbor Contributions should not be viewed as simply as "use Safe Harbor and pass your testing".
Your Pension Consultant will plan ahead, having the proper notices, considering how to message a Safe Harbor to participants throughout the year (always discuss it as an elective contribution), the frequency of when your business funds Safe Harbor matching contributions, and go over the three options for Safe Harbor matching formulas (including one that has vesting).
Contact us for more further discussions on this topic
Keith Mayfield