Profit Sharing Plan with Permitted Disparity

[Guest TGinthe'Ville]

Two Questions:

1. If a profit sharing plan is top heavy, must the permitted disparity percentages be lowered from 5.7 to 2.7, from 4.3 to 1.3 and from 5.4 to 2.4?

2. Regarding the employer contribution percentages, can you use amounts other than whole numbers? Say, 7.5% and 13.2% or 7.5% and 10.2%?

Thank you for your help.

[R. Butler]

1. Perecentage isn't generally lowered simpley because a plan is top heavy. The plan document should specify how to allocate the cotnribution.

2. I'm not really sure what you are asking, but a company's contribuion does not have to be whole number.

[AndyH]

Or, to quote a fellow board member:

1. Nope

2. Yep

[Guest trumpy]

Short and Sweet - I like it!