Top Heavy benefits under DC plan when DB is frozen

[nancy]

If an Employer maintains both a DB and DC plan and the DB plan was frozen as of 1/1/02, is the DC top heavy minimum for 2002 3% or 5%? Are you considered as participating in both only if you receive a benefit accrual?

[Blinky the 3-eyed Fish]

First, the top heavy requirements for participants in both plans are designed to provide top heavy minimums in one of the plans, rather than both. So, for it to come into play, a participant must accrue the top heavy minimum in both plans.

In your situation with the frozen plan, the document must have been amended prior to someone working 1,000 hours in 2002 to eliminate the need to provide the top heavy minimum in a frozen plan. If that was done, your requirement is to only provide 3% in the DC plan (assuming a key employee received at least that amount).