A safe harbor plan is established 1/1/2002. The required contribution will be the basic match. If all the safe harbor requirements are met, is it correct to state that for the 2002 plan year no additional contribution is required for the nonHCE / nonKEY if the only participant that elects to defer is the business owner? Assume no other employees become eligible in 2002.

I believe that's correct. Crazy, huh?

If this is a new plan and the only contribution is by the owner, the plan will be top heavy and a top heavy minimum contribution will be required to all non-key employees.

I agree with Medusa. As long as no profit-sharing contributions are made, the plan automatically is deemed to satisfy top-heavy under EGTRRA.