Top heavy minimum for partnership

[rlb64]

Partnership has a top heavy profit sharing only plan in 2003, but started a 401(k)/match the end of 2004. The match is a safe harbor formula, but technically didn't start the safe harbor until 2005. The only contributions thus far for 2004 were the deferrals and match for all employees and partners. The partners assumed they did not have to contribute any top heavy minimums in 2004 due to starting the 401k/match. They have already filed their tax returns.

I assume the top heavy minimum deposited shortly would have to be deductible in the 2005 tax year and included in the 2005 415 test. Is this correct?

The plan provides top heavy minimums to key employees. Is 2004 earned income adjusted to calculate the top heavy minimums for the partners?

[Blinky the 3-eyed Fish]

I assume the top heavy minimum deposited shortly would have to be deductible in the 2005 tax year and included in the 2005 415 test. Is this correct?

It would be deducted in 2005. It would have to be in the 2005 415 if the contribution is made 30 days after the due date of the tax return. Assuming it was filed 4/15 and since it is past 5/15, it is a 2005 annual addition.

The plan provides top heavy minimums to key employees. Is 2004 earned income adjusted to calculate the top heavy minimums for the partners?

No. Because the deduction will affect the 2005 tax return, it should factor in to that NEI calculation.