top heavy question

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

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. 

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