TPApril Posted October 1, 2016 Share Posted October 1, 2016 It's late Friday in the heat of extended 5500 season, so perhaps I'm not thinking straight...just need to bounce this off someone. Situation: Xtested Plan; highest rate to HCE = 20% NHCE's receive 10% Comp counted from date of entry Conclusions: Therefore all NHCE's receiving an allocation must receive at least 5% since 1/3 of 20% > 5%. At 10% that's all fine except for new participants. Is it correct that they must receive at least 5% of full year comp? Where I'm fuzzy is if there is some 1/3% test we can apply to each participant? Link to comment Share on other sites More sharing options...
ETA Consulting LLC Posted October 1, 2016 Share Posted October 1, 2016 The 1/3 rd rate is based off the Compensation used for allocation purposes. The 5% rate uses 415 Compensation (but only for the period of eligibility) Good Luck! CPC, QPA, QKA, TGPC, ERPA Link to comment Share on other sites More sharing options...
John Feldt ERPA CPC QPA Posted October 4, 2016 Share Posted October 4, 2016 Top heavy minimums. If it's a DB/DC combo with the TH minimum handled in the DC plan, then 5% of full plan year compensation is what you'll need to check for those non-key EEs participating in both plans. Link to comment Share on other sites More sharing options...
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