MBCarey

The HC with the highest percentage is getting 3% match + 2.34% overall profit sharing contribution. The lowest NHC is getting 3.00% match +.77% profit sharing. The participant who did not defer is getting a 2.34% TH plus .77% profit sharing. This just does not sit right with me. I am sure I am missing something. Since the HC's are all receiving the 3% match, does that mean that my TH contribution has to be at least4% and not the 2.34% that the HC's are getting as a profit share.

I am really struggling with the new comparability regulations. I have a medium size plan with 21 HC & 128 NHC. The plan is a top heavy integrated 401(k) plan with a 3% match. The trustee would like to use a $125,000 profit sharing contribution and maximize it for the HC's. Being this is a 2002 plan scenario, the match is being utilized to help satisfy top heavy and then the remaining part of the 125,000 is allocated. I have used the spread sheet provided by Fred Payne to calcualte the Gateway and it appears to pass, I am just real concerned that I am not satisfying top heavy. At it stands now the highest HC is receiving a contribution of 2.34% overall and the lowest NHC percentage is .77%. A participant who made no deferral is receiviing a 3.11% contribution. the 2.34% + .77%. This just doesn't seem to make sense in my brain. Any advice would be appreciated. Hope I don't totally confuse everyone with my lack of knowledge. Thanks