Top heavy plan, match with allocation requirements

Facts: Plan is top-heavy; Has a 3% non-elective safe harbor contribution; Has a stated match of $0.25 for each dollar deferred up to 4% of pay for Non-HCE only – has last day/1000 hour requirement; Has a discretionary profit sharing plan, but has decided NOT to make a profit sharing contribution for 2020.

I know if they make a profit sharing contribution (which they always have in the past) that they would need to satisfy top-heavy minimums, but in 2020 they are not going to make a profit sharing contribution.

My question is if for 2020, do they have to satisfy the top-heavy minimums? I know that adding allocation req's to a match makes nondiscrimination more difficult to pass, but does the fact that the match is for non-HCE only help? 

Any insight you can provide would be much appreciated!

Thanks! 

Did any Key employee have an allocation at all in 2020?  Remember, salary deferrals count as an "allocation" for considering the TH minimum.  The TH minimum is the lesser of 3% or the highest allocation to a Key employee.

That said, if the plan has a 3% Safe Harbor contribution, chances are the TH minimum is already being satisfied.

If the plan allows, the match MAY be able to offset the TH minimum due.  I do not think it is mandatory that they do.  Check the plan doc.

Don't confuse Key EE and HCE.  Though it is rare that a Key EE is not an HCE, it's quite common for an HCE to not be Key.

Key EE's may not have to get the TH contribution, but check your plan doc.

Thanks for your response! I actually reached back out and asked my colleague (the account manager performing the testing) for more specifics surrounding her question to see if that would shed any light to the particular issue she is having (I'm relatively new to the industry, and this is my first testing season, so some of this stuff is still quite new to me and it turns out her question was less about TH and more specific to the match)

She is asking if the match as stated above would take the plan out of safe harbor status and if that would then make it so that the plan had to test for top heavy? Because if the plan is taken out of safe harbor status and has to be tested, it will be top heavy and then minimums will be owed. 

Are you saying that the issue is moot because it has the 3% SH? 

Thanks!!

The match as stated appears to fall with the the rules that would not violate the deemed not-top-heavy status for 2020. That is if the 3% NEC and match as stated are the only allocations (no PS or forf realloc) you don't have to worry about TH for 2020.

Thanks, Lou. Is that true even though there are hour and last day allocation requirements to the match? Is it deemed to pass because the match is for NHCE only?