Key + safe harbor match

[Guest dhall]

What happens if a key EE is the only one who defers in a safe harbor match plan? Would this mean he would have to allocate the top heavy minimum to all NHCs, since the plan is top heavy?

[Jim Chad]

If the only contrib in a safe harbor plan are deferral and safe harbor the Plan is deemed not top heavy.

Any forfeitures being allocated as non elective?

[Guest dhall]

No forfeitures, but I thought something could be wrong if ONLY the KEY EEs deferred.

I knew the rule about the safe harbor, and not being top heavy.

Thanks for the reply.

[Tom Poje]

In such cases, I would want election forms from the non-keys indicating a 0% deferral election. arguably someone could say they weren't aware that a match was available.