top heavy 401k plan

[Guest ehayes]

i have a top heavy 401k plan that failed the adp test. is the top heavy minimum contribution based on adp deferral percentage prior to distribution of excess contribution amounts? also if qnec is made to correct adp failure, would qnec contribution be counted towards top heavy contribution?

the question on top heavy funding relates to which hce adp deferral percentage would be used to calculate minimum top heavy funding requirement, the pre distribution adp % or post distribution adp?

[Blinky the 3-eyed Fish]

The returned dollars to the HCE's do not reduce their annual additions for the year, thus your top heavy amount is based on gross deferrals.

The QNEC can count towards the top heavy contribution requirement.