Top Heavy and Safe Harbor

I have a plan that had a 3% SHNEC contribution for 2019. For 2020, they chose NOT to have a Safe Harbor provision. They are top heavy for 2020. Do they need to make a 2020 top heavy contribution for 2020 or are they all set because they were a Safe Harbor in 2019.

Thank you!

3 minutes ago, coleboy said:

I have a plan that had a 3% SHNEC contribution for 2019. For 2020, they chose NOT to have a Safe Harbor provision. They are top heavy for 2020. Do they need to make a 2020 top heavy contribution for 2020 or are they all set because they were a Safe Harbor in 2019.

Thank you!

Yes, they have to make a top heavy contribution for 2020. Why would their 2019 status impact 2020?

Seems like a bad decision to eliminate the safe harbor. Might want to consider the retro safe harbor if there are also testing issues.

That's what I thought but I started second-guessing myself since top-heavy goes forward! I had tried to talk them out of giving up the safe harbor but they wouldn't listen. They now are facing big refunds plus the TH contribution. I will be having that discussion re: the retro safe harbor shortly.

Thank you!