Can Match be considered in 5% TH Minimum for DB and DC Plans

[Guest Scott McHenry]

EGTRRA changed Code Section 416(E)(2)(A) to allow matching contributions to be considered when determining the satisfaction of the DC 3% of compensation top heavy minimum allocation.

The seemingly outdated 416 Regs indicate that matching contributions (if used in 401(m) test) cannot be considered in determining the satisfaction of minimum benefits.

Question:

What is your comfort level with using matching contributions to satisfy the alternative 5% of compensation minimum allocation requirement where there are both DB and DC Plans?

[Mike Preston]

Very high.