Catch Up in Top Heavy 401(k) PS plan

[MBCarey]

Can an owner who is over the age of 50 make the catch-up contribution if he is not going to make the minimum Top Heavy contribution for the year?

[imchipbrown]

I don't think you have a catch-up contribution until you reach a plan-imposed limit (maybe 0% of comp works), the 402(g) limit (not in this case) or the 415 limit (doesn't work here. zero comp, nothing to defer).

[WDIK]

How does the top-heavy contribution relate to catch-up contributions?

[Tom Poje]

perhaps what the question was intended to be was:

if the only contribution a key person receives is a catch up, does a top heavy contribution need to be made for all other participants.

I suppose this could happen if plan was written such that

key ees not allowed to defer. therefore they make a catch up.

since they received a contribution, do they have to make a top heavy.

If I recall correctly, the answer is no. catch ups are not used in determining how much top heavy to put it.

[Guest Gordy]

Tom is correct. See Sal's ERISA Views Fall 2003 pg 36.