Employee 401(k) as an Employer Contribution

[Bri]

EGTRA-EGTRA-read-all-about-it says that employee 401(k) will not count as employer contributions toward the section 404 deduction limits.

Does anyone know whether they will still be counted as employer contributions for the purpose of determining top heavy minimum accrual requirements.

In other words, does this mean owners in a top heavy plan can defer the maximum without having to give everyone else a 3% minimum?

--bri

[rcline46]

Since elective deferrals still count for annual additions, and 416 is about annual additions, then still a Top Heavy consideration.