Allocation to Non-key in Age weighted

[Guest Doogie61]

OK...here is my question. I have ana Age Weighted plan with two people. The owner is age 66 and the employee is age 39. It's an Age Weighted plan Corbel Prototype. Salaries are $160000 for owner and $33500 for employee. They are only making a $5000 contribution and if you allocate that under an age weighted formula the Key guy gets most of it. Now, the plan is Top Heavy....under the age weighted formula the owner would get a tad over 3% and the employee under 3%. Do switch to standard PS allocation of 2.58% accross the board or do I give the EE 3% and let the owener get the rest?

Thoughts?

[Tom Poje]

the top heavy minimum is the lesser of 3% or whatever the key employee receives, so it wouldn't make sense to give the non key 3% and allocate a smaller % to the key ee.

since the contribution is so small, its basically a comp to comp allocation. each person should receive the same %

[BG5150]

Were there any deferrals by the owner?