top heavy calculation

[eilano]

When doing a top heavy calculation for a defined contribution pension plan (i.e., money purchase or target benefit plan), it has been my understanding that contributions due as of the determination date are included even if they are not actually made by that date. However, for non-pension plans (i.e., profit sharing plans), only contributions actually made by the determination date are included (except for the initial plan year). Do these same rules apply to 401(k) contributions? Initially, I thought that since 401(k) contributions are required to be deposited in a timely manner, that any 401(k) contributons deposited after the determination date for the prior period should be included when doing the top heavy calculation. However, after reviewing 1.416-1, T-24, it appears that this is incorrect.

[John A]

Since 401(k) contributions are not subject to the minimum funding rules of Section 412, I believe you would exclude any 401(k) contributions actually made after the determination date.