Top Heavy Minimum

[Guest chris4013]

Facts: Top Heavy 401k plan. TH required. TH minimum allocated only to nonkeys. Non Elective accrual requirement T>500 hours.

We want to make the least amount of contribution. We want to allocate forfeitures as the top heavy minimum.

Can we exclude the T>500 hours participants because it's only a TH minimum?

If we have to add the T>500 hours then do we also have to add the key?

[Tom Poje]

terminees are not normally eligible for a top heavy, so no, they should not get a top heavy, unless you have a strange document requiring it.

everything else being equal, you are probably ok.

If you have HCEs that are non key, then you would have to run a test proving that coverage would pass (just in case you have a flock of NHCEs that quit with greater than 500 hours.