Safe Harbor/ 401(K) Plan

[Guest Margaret Denton]

In a Safe Harbor 401(k) Plan under the IRC 416(g)(4)(h) as added by EGTRRA which states that this type of plan does not fall under top-heavy as of January 1, 2002. If they choose not to make a safe harbor contribution for 2002, will top-heavy apply and they will have to make a top-heavy for 2002.

[Brian Gallagher]

if the plan doesn't make the safe harbor contribution, it becomes a regular ol' 401(k) plan for that year, subject to the top-heavy rules and the adp/acp testing