Guest Alwaysthinking Posted June 9, 2003 Posted June 9, 2003 I have a top heavy plan for the 2002 plan year. The employer is using matching contributions to offset top heavy. There are a few participants that do not defer. The eligibility rules are 3 months and quarterly entry dates. Can I use statutory exclusions (21, 1 yos) to exclude some participants from the top heavy minimum? The document has all participants employed on the last day. I don't think I can, but...
Blinky the 3-eyed Fish Posted June 9, 2003 Posted June 9, 2003 No, you can't. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
Tom Poje Posted June 9, 2003 Posted June 9, 2003 many moons ago, on one of these posts, someone 'claimed' to actually have a document that specifically excluded 'otherwise excludables' from top heavy minimums, and supposedly they had a determination letter. I have never seen one of those, and never tried to write a document for approval under those conditions, but I guess you never know.... You are correct, though, generally you have to provide top heavy minimums to those people. It doesn't sound like you have a document that would exclude this group of ees.
Guest Alwaysthinking Posted June 9, 2003 Posted June 9, 2003 Thanks, that is what I thought. I just wanted a little reassurance.
kocak Posted June 14, 2003 Posted June 14, 2003 I think in order to use match to offset top heavy you would have to have your EGTRRA amendment in place. Lots of plans haven't done their EGTRRA amendments yet and I would think if you didn't have it in place, it could be construed as a cutback issue. Any other opinions on this?
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