Top Heavy Minimum

[Guest lap716]

A key employee contributed deferrals to a top heavy plan which are classified as catch up since they were the only deferrals in the plan and it fails adp testing. If a contribution is a catch up contribution, does it still invoke the top heavy minimum rules?

[PensionPro]

No.

Catch-up contributions with respect to the current plan year are not taken into account for purposes of section 416. However, catch-up contributions for prior years are taken into account for purposes of section 416. Thus, catch-up contributions for prior years are included in the account balances that are used in determining whether the plan is top-heavy under section 416(g). 1.414(v)-1.