Does Safe Harbor Matching Contr count toward meeting Top Heavy requirement

[Guest nancy814]

I have a Top Heavy 401(k) Plan with safe harbor matching contributions. Client wants to make $20,000 discretionary profit sharing contribution. Does safe harbor matching contribution already made to participants count toward top heavy requirements enabling me to alllocate $20,000 to key and non key employees alike? I have found 2 different citings which appear to conflict. First is Sal's ERISA Outline Book in chapter 3b.58 seems to say that it does, while the 2009 Pension Answer Book Q 26.47 appears to say that it doesn't. AAARGHHHH Thank you for your anticipated help, I really appreciate your insights.

[rcline46]

Believe it or not - this is actually a document choice, so guess you have to see what the doc says. The answer is - it may be used.

[Logan401]

The match would satisfy the minimum, but it depends on the pay that was used.

You may have a participant that entered 7/01, and the plan doc may use date of entry pay as eligible pay.

The discretionary ps will most likely cover the gaps though.