2 Yr Eligibility for PS, can TH contrib be on vesting sched?

Plan requires 2 years of service to be eligible for the PS component.  Therefore 100% vesting required. Plan is 401(k) Plan.

If the Employer does not want to make a Profit Sharing contribution, but a TH is required, can the TH contribution be on a vesting schedule?

Not if you are requiring 2 years eligibility.

***edited to add that my brain wasn't registering the 401(k) part and this was a silly answer***

Why?

The document says there must be an Employer contribution?  It doesn't say it has to be a match or non-elective?

I don't know how you do it administratively (system-wise that is) because in our world TH mins get built into PS but yeah, I think you could say "no PS this year" and then just have the TH as a stand-alone...on a different schedule with vesting over time - of course that should be in the document already.

It could certainly be done by having two separate plans - a 401(k), that provides the TH minimum and has a vesting schedule, and a separate PS plan that has 2-year eligibility and 100% immediate vesting.

Whether it could be done in one plan depends on what the document says. For example, the FT William doc that we use says that the top heavy vesting schedule will only apply to the extent it is more favorable than the plan's regular vesting schedule. That language would seem to preclude doing this in a single plan.

20 minutes ago, C. B. Zeller said:

the FT William doc that we use says that the top heavy vesting schedule will only apply to the extent it is more favorable than the plan's regular vesting schedule.

Good point.  We use FTW and while I did do a quick look at the AA section, I didn't go to the BPD where this is found.  

14 hours ago, BG5150 said:

Plan requires 2 years of service to be eligible for the PS component.  Therefore 100% vesting required. Plan is 401(k) Plan.

If the Employer does not want to make a Profit Sharing contribution, but a TH is required, can the TH contribution be on a vesting schedule?

But participants would be eligible for top-heavy after one year?

Unless the safe harbor top-heavy exemption applies, once they are eligible to defer and the plan is top-heavy, then the non-key employees must get a top-heavy minimum allocation, even if they are not yet eligible for profit sharing, match, and even if they don’t defer. Since the plan allows deferrals and can’t require more than a 1 YOS requirement for deferral eligibility, they have to provide the top-heavy before they’ve met the 2-year eligibility requirement for the PS portion of the plan.