Cross tested top heavy rehire

I have a rehired participant, no BIS,  worked ~ 825 hours in 2017, top heavy cross tested safe harbor match plan.  She did not contribute so no safe harbor match but receives a top heavy allocation.  Participants who receive a nonelective contibution must then be bumped up to the gateway.   My question is this...the owner's profit share percentage is 9.33%, which means the staff group can get 3.11% and gateway test passes.  However I have to increase the staff contribution in order to pass other non discrim testing.  Eligible staff is getting approx. 5.5% for profit share. Can the rehired participant receive 0.11% in addition to her top heavy or is she required to receive 2.0% to get her to 5%?  I can't seem to sort this out in my addled mind.....

What does the document say?

If she's not otherwise eligible for the PS contribution but the plan has fail safe gateway language you would give her the 0.11% to pass gateway. If the plan now passes all applicable non-discrimination tests I'm pretty sure you are done.

If on the other hand she's eligible for the PS and in the same group that is getting 5.5% than she would get the bump to 5.5%.

From the way you describe the situation is sounds like she doesn't meet the allocation conditions for PS  but is getting a required TH minimum plus the additional amount required to pass gate-way under the plan. So I think she gets the 3.11% contrib and you are done if plan passes 401(a)(4) testing.

Thank you Lou.  Plan doc does have fail safe gateway language. so that was my thought as well the the 0.11% was ok.  The plan does have a 1000 hour rule for ps allocation.

If she normally would not get a profit sharing, all she gets is Top Heavy.  But, if the plan will be cross-tested, you document probably has her bumped up to the Gateway.  That's it.

If you need her bumped up to pass testing, you will have to do an 11-g amendment.

(Ninja'd by Lou!)