Matching contributions “may” be used toward satisfying the 3% top-heavy contribution requirement. What are the qualifiers in this statement?
Rev. 04/04/08, E-mail Alert 2008-5

"May" is an operative word. Any matching contributions made by the employer are able to be used toward satisfying the top heavy allocation.

Example: A plan provides a matching contribution of 50 cents for each dollar deferred up to 5% of compensation and a 3% top-heavy allocation requirement. A non-key employee who deferred 5% would receive a 2½% of compensation match — and the match would count toward the 3% top-heavy contribution. A key employee in this plan made a deferral in excess of 3%, the non-key employee in this example would need to receive a top-heavy contribution of only 0.5%, as the 2½% matching contribution is applied towards satisfying the required 3% top heavy contribution. Note that an eligible participant who chose not to defer would need to receive a top heavy contribution of the full 3%.