Jump to content

Recommended Posts

Posted

Two Plans, one Profit Sharing, one Target Benefit. The Plans are top heavy as aggregated. They cover the same employees.

PS recently changed eligibility to 6 months, but left Target Benefit at one year.

Is there any funky exception to the 3% contribution if one of the Plans is subject to the minimum funding requirements?

Thanks,

Austin Powers, CPA, QPA, ERPA

Guest greggi39
Posted

i don't think there is any exception for p/s and mp dual plans. and the mpp is subject to 412.

Posted

on the other hand, suppose your document says the top-heavy is provided in the target plan. Bob has only worked 6 months and is only in the ps plan. now what? he has to get the minimum, but he can't.

lets be careful out there!

Posted

It does say that! That was actually why I had the question in the first place.

Actually, I think its worded such that the top heavy is made to the Plan covered by 412 to the extent that each participant is covered...

We sent an email to the client to make sure it was addressed...

Thanks!

Austin Powers, CPA, QPA, ERPA

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use