Top Heavy but no NHCE Employees

[SCSFAM03]

I have  a plan who 2018 is the first  top Heavy Year. The docs say to allocated TH Minimum to All. However, the only 2 NHCE EE"s termed during the year so are not eligible for a Top Heavy. However if I allocate the TH to just the 3 HCE then I fail coverage, and have to bring in those 2 NHCE.  Also the Plan is terminated 12/31/2018.

Thoughts?

 

[Tom Poje]

if the NHCEs quit with less than 500 hours then they could be excluded, but otherwise I don't see an out

[SCSFAM03]

Thanks Tom, that's what I thought.

 

[BG5150]

Next step, amend the plan to make TH to only non-keys.

[Tom Poje]

your cape must have flown in front of your eyes.

He said the plan terminated in 2018, but you make a good point for on-going plans

[CuseFan]

you can have non-key hces, in which case that doesn't help.