When can I set up a new 401(k) to avoid top heavy

[kmciver]

I have a ps plan (no 401(k)) that terminated 9/04. All paid out 4/05. The plan year was 3/1 to 2/28. The plan was top heavy. If I start a 401(k) today I assume it will be top-heavy. What if the Key's sit out a year?

[Guest deathbycashcall]

Distributions to active employees remain in the top heavy ratio for 5 years. Only distributions to terminees fall out of the ratio after 1 year.

[Alf]

You have to exclude keys for five years or try a safeharbor 401(k) b/c that is generous enough to satisfy the top heavy minimum.