top heavy and catch up contributions

[Guest Peggy806]

If a key employee contributes 8000 and has a compensation of $200,000, his contribution percentage is 4%, so a minimum top heavy contribution of 3% would need to go to all non-key employees. If this key employee is over age 50, can we subtract 5500 from the 8000 and make his contribution percentage 2500/20000=1.25% so that the minimum top heavy contribution due to employees is 1.25% rather than 3%? We were not required to move any of the 8000 to catch up to pass ADP testing.

Thanks

[Guest Peggy806]

Never mind, I just found the answer to my question. We cannot use any deferrals to offset the top heavy minimum unless it was classified as a catch-up contribution as a result of ADP failure or exceeding the 402(g) limit.