I seem to recall reading somewhere that EGTRRA included a provision to eliminate key employee deferrals from the definition of minimum contribution received by a key employee. This would eliminate the need for a top heavy minimum contribuiton where the only money going into the plan for the year was employee deferrals. Is my memory correct or is this just something congress was considering but never enacted? Thanks in advance for you help.

Dean

Deferrals by a key employee still considered an allocation for determining top-heavy minimum accruals.

Catch-up contributions are not counted as an accrual for top-heavy purposes.

You might also be thinking of Safe Harbor 401(k) Plans, which are exempt from the top heavy provisions if only the safe-harbor nonelective or safe harbor match is provided.