PFranckowiak Posted September 6, 2011 Share Posted September 6, 2011 401(k) Safe Harbor Nonelective Top Heavy Company bought out. Plan terminating 8/31 Participant Compensation Safe Harbor Nonelective made for the 8 months to all eligible. Participant Compensation used for 2 new employees entering 7/1. I know that the Compensation limit needs to be prorated 8/12 * 245000 = 163,333.33 Two questions 1. Do the two EE's that entered mid year have to have additional contributions because the plan is top heavy and the 3% was only on participant compensation? 2. Does the 402(g) limit need to be prorated? 415 Limit? I haven't had a plan termination in years - so just wanted to make sure I didn't need to do 1 or 2 above. Thanks Pat Link to comment Share on other sites More sharing options...
ETA Consulting LLC Posted September 6, 2011 Share Posted September 6, 2011 No, as long as they continue to meet the safe harbor 401(k) exemption from top-heavy. Good Luck! CPC, QPA, QKA, TGPC, ERPA Link to comment Share on other sites More sharing options...
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