Top Heavy Profit Sharing Plan - Must there be an ER contribution?

[Guest ChopperPilot]

In a cross tested top heavy profit sharing plan with no 401(k) feature, does there need to be a 3% minimum contribution to NHCEs? The ER has contributed $0 for 2004 and does not want to contribute anything. Thanx.

[Guest Bob K]

The TH requirement for a DC plan is the lesser of 3% or the percentage allocated to the highest benefiting key employee. Since the highest benefiting key employee is getting 0%, nothing is required for the non-keys.

Hope this helps.

Bob