Do Catch-Up Contributions require a Top Heavy allocation?

[Bruddah Kimo]

A quick question. The only contribs made to a Plan are Catch-Up contribs made by a Key Employee. No contribs are made by Non-Key's during the year. More than 60% of assets in the Plan are in the Key EE account. Does the Catch-Up contrib trigger a Top Heavy allocation to be made to the Non-Key EE's?

[david rigby]

The only contribs made to a Plan are Catch-Up contribs made by a Key Employee.

Are you sure?

Catch-up contributions don't exist until elective deferrals have reached one of the limits: a plan-imposed limit, the 402g limit, or the ADP limit.

[Bruddah Kimo]

The NHCE ADP is 0.0% which means the max rate for HCE's would be 0.0%, therefore the $5500 deferral made would be characterized as a CUC.

[Below Ground]

No Top Heavy Minimum required when only Catch-Up Deferrals.

[BG5150]

Make the plan SH Match, and you're good to go and the key ee can max out deferrals, I believe. (As long as there is no other contributions, you'll get the TH "pass") Unfortunately, you'll have to wait until 2011 for that.

Are you sure that no one wants to participate? Are there election forms for everyone opting out?

[Bruddah Kimo]

BG5150 - It's for a new plan we took on mid-2009. We have them setup for Safe Harbor in 2010. Thanks for your help!