Cash Balance Top-Heavy

[stbennet]

Paranoid busy season question:

Cash Balance plan has a one-hour allocation requirement. There's still no need to worry about TH if the participant doesn't have 1,000 hours, right?

[AndyH]

That is the opposite of the correct answer.

A top heavy minimum is not required in a DB plan if the participant worked less than 1,000 hours.

In a DC plan, a last day requirement is permitted but not an hour requirement.

Many cash balance plans are aggregated with PS plans, so check the combined rules carefully.

[ETA Consulting LLC]

That is the opposite of the correct answer.

A top heavy minimum is not required in a DB plan if the participant worked less than 1,000 hours.

In a DC plan, a last day requirement is permitted but not an hour requirement.

Many cash balance plans are aggregated with PS plans, so check the combined rules carefully.

Brain Cramp, Thank you for the correction.

I am so embarrassed I wrote it, so I deleted it