Does a 3% safe harbor contribution also satisfy the minimum top heavy contribution for a top heavy plan?
R. Butler
Oct 8 2001, 03:16 PM
Yes. See IRS Notice 98-52, Section VIII. C. 1.
rcline46
Oct 8 2001, 03:30 PM
In 2002, yes. In 2001 - maybe. If the 3% is on comp while a participant, and participation may start any time in addition to the first day of the year, the you also need a 3% T/H contribution on that pay while NOT a participant.