Top Heavy COmbined Test DB/DC

[emmetttrudy]

Plan sponsor has a DB and a 401(k) PSP. The combined plans were top heavy for 2009. The DB Plan was frozen in 2009 before anyone accrued a benefit. In order to test for top heavy status for 2010, do both plans need to be combined? Or since the DB plan is frozen, is the 401(k) PSP tested on its own?

[Mike Preston]

Combined

[SoCalActuary]

Combined for determination of TH.

No DB accrual for any key, therefore no need for DB to accrue TH min for year, assuming your doc is written correctly.

[emmetttrudy]

So for 2009, any non-key active on the last day would just need to get a 3% employer contribution in the 401(k) PSP to satisfy the TH minimum?

[SoCalActuary]

So for 2009, any non-key active on the last day would just need to get a 3% employer contribution in the 401(k) PSP to satisfy the TH minimum?

If that is what your plan document says, then it should comply with the TH rules.

[Tom Poje]

is that assuming one of the key ees deferred at least 3% (or will receive a profit sharing contribution)?

[emmetttrudy]

yes, one of the keys deferred at least 3%.