Topheavy minimum contribution

[Guest TCAT]

Need information on how(if)matching contributions can be applied toward topheavy 3% for NHCE. If ACP is passed using Zero for all NHCE can match be used toward 3%. Also, if first year plan, ACP is deemed to be 3% for NHCE.Is this a loophole for using match or too good to be true. Thanks

[LCARUSI]

If the 401(m) test is passed with a zero ACP for the NHCEs, then yes you can count each participant's match toward the required 3% of compensation contrib. (I assume the ACP for the HCEs is also zero.)

Regarding your comment on the Plan in the first year: If you are saying that because the ACP is deemed to be 3% you can then use the actual contributions toward the top heavy contribution - I don't think so.