Top Heavy Minimum in Combo Plans

[401kWhisperer]

Hello, we have an employer with 3 plans: cash balance, 401(k) safe harbor match and profit sharing only.  

If we state in the PSP document that the 5% top heavy minimum will be funded in this plan, are we ok if the SHM offsets it in the 401(k) plan? 

Example, employee defers 5%, receives a 4% SHM in the 401(k) plan.  They need to receive an additional 1% to satisfy TH.  We allocate that in the PSP.  Will this pass muster since the PSP only shows 1%?  

thanks!

[Bri]

you need to state in the CB document that the 5% THM will be handled under the DC plan.  

but then, sure, the person needs to get a total of 5% and 4 of that can be the match.  

insert disclaimers about gateway minimums, though, here.....