Top Heavy allocation to "key employees"?

[kwalified]

Employer has less than 30 employees, 5 of which are key ee's, therefore for TH purposes only top paid 3 are considered. So if 2012 is its first year for being TH, do the 2 excluded Key employees get the TH minimum? My thinking is no, but wanted verification.

Thanks

[Tom Poje]

you've lost me a little.

'top paid' usually refers to top paid group election, which applies to HCEs not to key employees.

[cpc0506]

you've lost me a little.

'top paid' usually refers to top paid group election, which applies to HCEs not to key employees.

I thought it was the officer test that limited the number of key employees. THat is, if there are 30 or less employees, you only need to include 3 officers in the test. 31-500 employees, limit officers to 10% and over 500 employees, limit number of officers to 50.