Top Heavy Contributions

[Dazednconfused]

Plan has immediate entry for deferrals, YOS for ER. Past years only owner and son were employed and contributing. In 2010, they hired four employees (all employed on last day), two employees deferred, however, so did owner and son at a much higher rate.

Since only the owner and son were participants in 2009, the plan would be TH for 2010. I am thinking that there is a TH requirement for the new EE's since they are participants on DOH for deferrals, am I correct? Or is there some rule out there I am not seeing...

Thanks for the help,

[12AX7]

I agree.