Flat Benefit Safe Harbor with Top Heavy Accruals

[Guest sdolce]

Is the flat benefit safe harbor of 1.401(a)(4)-3(B)(4)(i)©(2) still satisfied if the top heavy minimum accrual is granted to HCEs (assume HCEs=Key Employees)?

[FAPInJax]

1.401(a)(4)-3(B)(6)(xi) under Example 3 appears to provide your answer. The example provides the top heavy to ONLY non-keys and the formula is acceptable because of the particular top heavy exception.

Your example would not even have the top heavy available to different classes - therefore, I would say it is OK