SH and TH minimum

[retbenser]

I have a DB/DC 401(k) combo where no participant is in both the DB and DC plans.

The DC plan is cross-tested.

This is the set up:

'........DB DC

HCE ...1 1

NHCE ...2 2

Question 1: Do I have to provide the 401(k) Safe Harbor 3% to the 2 participants not in the DC plan?

Question 2: Do I have to provide the TH and Gateway minimum to the 2 participants in the DC plan?

[AndyH]

1. You have to provide it to who is eligible for it under the terms of the document, so No is the answer.

2. If you are aggregating the plans for 401(a)(4) and 410(b), yes they must get the gateway (if applicable) because they are benefitting under the combined plan, therefore they are considered "benefitting employees" and must get the gateway.

As to top heavy, I think they only need to get the top heavy benefit for the plan that they are eligible for. Anybody disagree?? But if they benefit under either and you are aggregating plans, the gateway applies which is normally higher than the top heavy requirement anyways, so it is a moot point.