Regarding Simple 401(k)'s: Does the top heavy test have to be performed? ( I know it doesn't for Simple IRA's )

Also, would a standard prototype document work for use with the Simple 401(k); Under match just reuqire the mandatory amount?

Thanks in Advance

no top heavy rules for a Simple 401(k) either

I agree no top-heavy test for SIMPLEs. You may want to consider using the IRS forms/documents IRS forms 5305 and 5304 are the numbers and include the announcementa nd payroll deduction forms. There may be another number for 401(k) SIMPLE. However, as Fred Reish (respected pension lawyer) once correctly said, recommending a SIMPLE 401(k) instead of a SIMPLE IRA is malpractice. You are far better off installing a SIMPLE IRA - you can limit the plan to just the match and deferrals (same as 401(k)), you eliminate the 5500 requirement and, if you use the 5304, federal law exempts sponsor from all fiduciary liablity. Some time ago American Society of Pension Actuaries (ASPA) published a comparison. You may want to look at it.

I have a lot of respect for Fred, but of course you have to consider all the business conditions. as much as I detest loans in a plan, a simple 401(k) can allow for them. (of course not so in an IRA) If the 2% nonelective was chosen then the simple 401(k) could exclude those who never complete a year of service, whereas the simple IRA you have a $5000 comp limit.
guess it's not that 'Simple', is it!

If a plan sponsor plans to grow to have > 100 employees soon, a SIMPLE 401(k) plan can be converted to a regular 401(k) plan easily. Given that the competitiveness of the funds and provider arrangements depends largely on the amount of plan assets per participant, it's nice to start a plan off as a SIMPLE 401(k) plan and start growing those assets instead of a SIMPLE IRA which becomes a dead end (under current law at least) if the company grows to be > 100 employees.