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Section 414 compensation


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I have a plan that is top heavy for the 2003 plan year. The plan eliminates commission as a form of compensation for the plan year. The participant in question is a HCE.

He earns 13,000 in salary and 90,000 in commission. Deferrals and the safe harbor non elective are based on the 13,000.00. I have been told that the top-heavy contribution is based on total compensation(salary & commission). Can anyone give me their opinion on this.

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