Top Heavy contribution not made for 2001

[Guest nlmc18]

A 401(k) plan with only elective deferral contributions was Top-Heavy for 2001, however the employer never made the minimum T-H contribution. Is this considered an operational failure of the plan that would need to be filed under EPCRS? If so, which program.

[Tom Poje]

http://benefitslink.com/IRS/revproc2003-44.pdf

Appendix A.02 of rev proc says you can correct top heavy failure (page 50 of the above assuming it prints the same as mine)

section 8.02 says insignificant factors (p29?) vs 9.02 significant (p.31?)

correction period for significant is last day of 2nd plan year following plan year failure occurred.

since all people are effected I would say it sounds significant, plan year was 2001 so I read that as being needed to be corected by end of 2003 if considered significant.

I suppose if it is a small plan one could argue the problem is insignificant, especially if the amount is small, etc.

[Guest nlmc18]

Thank you. Is there an excise tax on late contributions?

[Blinky the 3-eyed Fish]

An excise tax applies to failure to meet minimum funding requirements (DB, MP and TB plans). This is not the case here.