contributions considered in top-heavy minimum calculation

[Guest EBC]

Are there any employer contributions that are "disregarded" when calculating a top-heavy mimumum contribution?

I was told a matching contribution should not be used to reduce the TH mim. However, I cannot find any documentation to that.

[Guest]

if matching contributions are used to satisfy top heavy minimums, then they are not used in the ACP test, hence this could cause the failure of the ACP test, which is why it is generally not recommended to satisfy top heavy this way. It is also great for morale - a nondeferrer gets a 3% contribution while you as a deferrer get zippo 'cuz your match was used.

It is alos not possible to use match to satisfy top heavy in a standardized document.

[david rigby]

Right, which is why a T-H 401(k) is the least desirable plan. The exception would be if there is another plan that already does the T-H contribution.