do deferrals refunded due to zero net s/e comp trigger TH minimum?

[AlbanyConsultant]

Small plan is top heavy.  This year, the net s/e income for each partner was zero (or a small negative)... and of course they already deposited their deferrals during the plan year.

Of course deferrals have to be refunded.  But what about TH?  Does this kick in, and a what rate (since I can't calculate $5,000 divided by zero compensation)?  Or do they get a pass because it's all being refunded?  I remember threads here that discuss deferrals refunded for ADP refunds are still counted, but I think this is a little different.

Thanks.

[Bri]

If it's not an annual addition because of their 415 limit being zero, I'd argue those aren't actual deferrals triggering the THM.  (As opposed to an ADP refund)

[Gina Alsdorf]

I second what Bri said.