safe harbor plans

[Guest Jane Freeman]

A plan that is considered an "exclusively safe harbor" plan is deemed to not be top-heavy even if the key employee percentage exceeds 60%. What does "exclusively safe harbor" mean? Can a plan have a profit sharing provision and be considered "exclusively safe harbor" if the only contributions made to the plan were deferrals and the 3% non-elective safe harbor (the discretionary profit sharing provision was not used)? What if the plan has profit sharing funds in it from prior years but during 2002 the only contributions made were deferrals and the 3% non-elective safe harbor?

I would appreciate any help that you can provide. Thanks.

Jane

[R. Butler]

To my knowledge no formal guidance, but see the following link.

http://benefitslink.com/boards/index.php?showtopic=16949