Top Heavy Plan no contributions on behalf on Key EE's

[Guest ROB VIDOVICH]

Profit Sharing Plan with CODA is Top Heavy for the Plan Year.... There was no discretionary profit sharing contribution contributed to the plan and the employer match is also discretionary. The Key Employees do not contribute to the plan (EE Def.). Since there were no contributions made to the plan on behalf of Key Employees, is a top heavy contribution required to be made to Non-Key Employees?????

[rcline46]

99.99 % of documents state TH contribution is 3% of non-key pay, or if less, the highest % of pay received by any key employee. So - no annual adds, no TH.

The other docs guarantee the 3% regardless of key contributions. As we have learned to say - RTFD.

[Guest Giovanni]

No