Top heavy - Safe Harbor

[CJS07]

A plan excludes HCEs from a safe harbor match formula and the plan is top-heavy - one of the HCEs is NOT a key employee - is it ok for the Company to continue to exclude him from the safe harbor allocation or must they give him a safe harbor match allocation to cover top-heavy?

[Jim Chad]

What is required is a top heavy contribution which may be less than the safe Harbor contribution.

But as you see so often here. What does the document say?

You have to do what the document says right now. Are you asking for advice on amending the Plan for next year?

[Guest Blbvip]

I don't believe a top heavy is required if the only contribution is deferrals and safe harbor match. The plan is deemed to satisfy top heavy. Therefore no contribution is due the HCE that is a non-key.