Safe Harbor/Top Heavy Plan

[Guest LoloV]

I am working on a Top-Heavy plan that previously made regular employer match and non-elective contributions. Balances remain in these sources. Starting in 2002, the Employer is only making a Safe Harbor match. Some people don't defer and therefore did not get a match.

My question is, since the plan is now a safe harbor and only the 401(k) deferral and Safe Harbor match sources are being funded, is this plan waived from making a Top-Heavy minimum? Or, does the plan have to only consist of the deferral and Safe Harbor source in order to qualify for this waiver? I've done some reading in Sal's book and can't find a definitive answer.

I'm just how others are handling this type of situation.

Thanks

[Tom Poje]

The answer given at the ASPA Fall conference was that if no other contributions were made (and that would include forfeitures) then the safe harbor plan is deemed to be 'not top heavy' for that particular year.

[Guest LoloV]

Thank you!