Who gets top heavy minimum

[Guest lforesz]

Hi,

I have always thought that an employee had to be a participant AND employed on the last day of the plan year to receive a top heavy minimum contribution. However, if a group of employees is spun off into a new plan during 2002 and none of the spun-off employees are participants in the top heavy plan as of 12/31/2002, we are being told they still need to get a top heavy contribution for 2002 because they were covered during the plan year.

I am trying to find guidance and everything I finds contradicts.

Any help is greatly appreciated!

[austin3515]

If someone is a nonkey employee who is still employed by the employer than they are eligible for the top heavy.

Provisions of any other plan shouldn't have any affect on another plan. In other words, if based on the interpretation of the top heavy Plan, they are eligible, they should get the contribution.

Remember, each plan document is stand-alone contract between the employees and the employer.