Top Heavy - 2 plans different plan year end

[Guest terric]

If you have one employer that sponsors two plans, one is a profit sharing plan with a 09/30 plan year end, the other is a Safe Harbor 401(k) plan with a 12/31 plan year end.

If the plans are deemed to be top heavy, the Safe Harbor 3% contribution will satisfy the top-heavy contribution as defined in the profit sharing plan's document.

Since the two plans have different plan year ends and the compensation will not be the same in each of the plan years, how do you satisfy the top-heavy requirement (other than the plans should probably be merged and have one plan)?

Thanks for any ideas!

[Guest terric]

Anyone have any thoughts on the matter?

[Tom Poje]

well, I will go out on a limb and take a guess

M-7 of 1.416-1

A - the sum...is 3% of such comp for that plan year OR for the calendar year ending within the plan year.

so hopefully you are making life easy and using the calendar year and satisfying things in one plan