top heavy question

[Tom]

Client has  basic safe harbor match.  They want to provide more match.  I will recommend the discretionary match that doe snot match deferrals over 6% nor exceeds 4%.  they can choose the parameters.

The plan is top heavy.  We don't run into this situation often but I believe the above still satisfies the top-heavy exemption since it all stays within the parameters of the safe harbor rules.

Thank you,

Tom

 

[John Feldt ERPA CPC QPA]

And has no allocation conditions (no last day or minimum hours requirements). Runs concurrently. So a deferral of 6% of pay gets both matches in full. 

[Below Ground]

If the only employer contributions are qualified under safe harbor rules, including the discretionary match, top heaviness does not apply.