Would it be permitted to make a Minimum Top Heavy Contribution in a non-top heavy plan?
Plan A - PS Plan with no keys
Plan B - PS Plan with keys
Plan C - CB Plan that includes some from Plan A and some from Plan B (including the key employees)
Plan A requires B/C to pass nondiscrimination. Plan B/C does not require Plan A to pass nondiscrimination. Based on this, we would say that B/C forms a required aggregation group but does not need to include A.
Plan B/C is Top Heavy. However, the plan sponsor would like to make the minimum Top Heavy contributions for B/C in the two PS plans - this would include making contributions to A for those who are participating in A and C.
Thanks in advance for your thoughts!
