Safe Harbor Match not Deposited for Calendar Year 2017

There were no other Employer contributions for the 2017 Plan Year. The Plan was top-heavy for 2017. Do they have a loss of the top-heavy "exemption" for an untimely deposit?

We intend to have them correct under VCP.

well

The preamble to the final 401(k) regulations sums it up as follows:

A plan that uses the safe harbor method must specify whether the safe harbor contribution will be the nonelective safe harbor contribution or the matching contribution and is NOT permitted to provide that ADP testing will be used if the requirements for the safe harbor are not satisfied. [emphasis added]

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I don't see how the issue of the match being late changes anything. you certainly don't do ADP testing just because it is late. You correct the problem and put the plan in a position it would have been had the error not taken place. A safe harbor plan is top heavy free if there are no other contributions. you are making up for missed gains, but that is not an additional contribution, and I have never seen any write up that says 'well since you are real late in addition to making the match you also have to run top heavy.

Thank you, Tom. That was my opinion, as well - but always appreciate a second opinion.