Safe Harbor Non-elective

[Gilmore]

I've read some information on a disaggregated safe harbor plan and was hoping that someone wouldn't mind verifying my understanding of the rules.

The plan has a 3 month wait for salary deferrals, but statutory requirements for the safe harbor non-elective. Am I correct in that if there is an HCE among the excludables an ADP test must be run and that the provision that allows for the HCE to be considered non-excludable would not apply in this case?

Also because the plan now consists of two separate plans for testing, the safe harbor "top heavy" exception no longer applies?

So anyone not termed during the plan year would need the 3% top heavy, assuming the plan is top heavy?

Thank you.

[Archimage]

Theoretically you must test the disaggregated portion whether there is an HCE in that group or not but yes I do agree with your assessment.

[Gilmore]

Thanks for the reply.