Jay3

This is a top heavy plan. The key employee deferred 4%. The plan doc reads that all get the top heavy (non-key and key). All non-key will get 3%. Do I still need to give an additional 3% to the key or does his deferral off set this?

For an off-calendar plan, what is the compensation to look at when identifying an officer who may/may not be "key".

Is the maximum match they can do without needing testing up to 4% of pay?

Does a plan operating as a safe harbor (3% non-elective) lose its' safe harbor status if it also provides a match formula of 40% match on deferrals up to 10% compensation.

An employer allowed a participant (NHCE) to join the plan at age 19 and the eligibility age was age 21. The employee deferred in 2007 and 2008. We were not aware of this until now (2/2009). The employee's actual entry date should be 1/1/2009. I referenced 2008-35 I.R.B. and it says, "The amendment may change the eligibility or entry date provisions with respect to only those ineligible employees that were wrongly included, and....". I have a concern with amending the plan for one person when several others were excluded because of age (all NHCE's). Thanks.