Safe Harbor Nonelective with exclusions

[AKPension]

Plan uses Safe Harbor Nonelective 3% but excludes Key Employees and HCE's.  For 2016, the plan is Top Heavy but there are no NCE's covered under this plan only HCE's and Key Employees.  Does the Top Heavy minimum have to be given?

[ETA Consulting LLC]

Do you have an HCE who is not a Key?
If so, then did any Key receive a contribution (or allocation of forfeitures)?

 

If yes, then yes; you would give the TH minimum to the non-key employee.

 

Good Luck!

[AKPension]

Yes there are 2 HCE's who are not Key employees.  The Key employees did do deferrals

[Kevin C]

If no contributions are made other than salary deferrals and the safe harbor contribution, why wouldn't the plan be deemed to not be top-heavy under 416(g)(4)(H)?  There is nothing in the code or regs that says you must have eligible NHCEs for the year to be safe harbor.  

[AKPension]

Thank you very much for your responses they were very helpful!

[ETA Consulting LLC]

I misread the question.  Didn't realize the Safe Harbor Provision.

 

Good Luck!