Safe Harbor Match and Top Heavy Minimum

[Chippy]

I haven't had this in a long long time, so I just need to verify that I am thinking correctly.

Plan has deferral and Safe Harbor basic match only for 2012 and is top heavy. Since there are no additional employer contribuitons, the plan is deemed to be not top heavy for this plan year.

The SHMAC is based on entry date compensation, so does this still satify the THM and no additional contribution is due to the participants? Even the ones that do not defer?

Thank you

[Tom Poje]

the regs say yes, plan is not considered to be top heavy.

at some conferences they have indicated such.

still, some, but not all, IRS reps have expressed an opinion that if it is entry date compensation there may be issues, but again that was only an opinion.

if the plan provides that otherwise excludables receives no safe harbor then the regs are clear the top heavy free ride is lost, but there is no such provision for comp from date of entry plans.

I think that means means some IRS officials have misgivings about the comp from date of entry issue, but there is little they can do about it.