Top Heavy/Voluntary Contributions

[Guest John Comelately]

Are voluntary employee contributions to a 401k plan (made by both KEs and nonKEs) treated as employer contributions for both KEs and nonKEs, in calculating the maximum Top Heavy contribution under IRC 416©(2)(B)? Or, are they treated as employer contributions for only KEs and not for nonKEs? Or, are the ignored in the calculation?

Thank you for your help.

[roy819]

bump

[Bruce1]

The top-heavy minimum contribution will look at the highest key employee allocation rate that takes into account all contributions of that individual. Whether it is considered employee or employer doesn't matter because the min takes into account everything.