Top Heavy Minimum Contribution

[Guest Frank Jackson]

I have a 401(k) plan that has no employer money (deferral only). The plan is top heavy. Does the plan have to be amended to include an employer contribution (source)to accomodate the minimum contributions? Thanks. Any references would be helpful.

[david rigby]

Ouch! A top-heavy 401(k). Yep, that's a problem. The T-H minimum still applies, unless there is another plan in an aggregation group that may help.

[Guest]

I don't think it's a matter of amending the plan. The document should contain language regarding top-heavy. in other words, you are simply required to make the top-heavy minimum. no amendment needed. 401(k)s that are top-heavy are a scourge.