$64,000 question -- it this a top heavy plan

[maverick]

Situation: 1 HCE, 1 NHCE, uses a standardized prototype document. On 12/31/01 the plan is top heavy.

Effective 1/1/02 plan restated on a non-std safe harbor 401(k) document.

If only deferrals and safe harbor match go into the plan from now on, is the plan top heavy?

The NHCE will not defer, so she will not receive a contribution.

We talked about top heavy safe harbor plans at Corbel's 401(k) update last week, and I'm more confused now than I was before.

Side issue: On restatement, could the NHCE sign one of those irrevocable waivers, and if so, would top heavy contributions (if the plan is top heavy) have to be made?

Thanks. Maverick

[Archimage]

The safe harbor match is an automatic pass for top heavy starting this year. That is assuming that they will not contribute any other types of contributions.