Top heavy minimum given to a plan with safe harbor match

[blue]

If non-key participants were given a top heavy minimum in a plan that had deferrals and the 4% safe harbor match only, would it okay to leave the top heavy contributions in the plan for participants.

[Blinky the 3-eyed Fish]

What does your document say?

[jquazza]

I think you got your self in a catch-22 situation. If the plans only has deferrals and SH match (even enhanced match,) the plan is deemed to be non top heavy, so there are no top heavy minimum contributions to allocate.

Now, if the plan provides an additional nonelective contribution, you have to allocate it according to the plan document (key and non-key too, depending on the provisions of the plan) and now, since there are contributions other than the deferrals and SH match, you have to provide TH minimum.

[austin3515]

Probably the cleanest thing to do based on jquazza's analysis (which I agree with) is to give the keys 3%. This would make it essentially a 3% profit sharing contriubtions, oh and by the way the TH minimums kick so you better allocate in accordance with TH. But wait, we already did!