allocating forfeitures against safe harbor match

[Guest Patkelley007]

Does anyone have an opinion on whether allocating forfeitures against a 401(m)(11) safe harbor match would cause a plan to lose the top-heavy exemption? I'm not comfortable the reallocation of forfeitures satisfies the requirements for the safe harbor contribution, and think they may be treated as a discretionary company contribution, which I believe would blow the top-heavy exemption normally given to safe harbor plans. I have read Rev. Rul 2004-13 on this several times and become more confused each time. Thanks for any input.

[Blinky the 3-eyed Fish]

In this situation you are not allocating the forfeiture against the SH match, rather you are reducing the deposit required of the employer. It meets the TH exemption.