May the Safe Harbor 401(k) 3% NEC be used to satisfy the top heavy contribution?
Rev. 6/25/02

Yes. Because all employees eligible to make elective deferrals will receive the 3% nonelective contribution for the plan year, this type of contribution may be used to satisfy both the top heavy minimum contribution as well as the Safe Harbor contribution. IRS Notice 98-52 the employer must be careful that the 3% is not part of an integrated allocation formula. The top heavy minimum and the 3% Safe Harbor contribution may not be integrated.