Top-Heavy contribution not made

[Guest JB2]

If a calendar year plan was top heavy for 1997, but the employer did not make the required contribution, can this defect qualify as signficant under APRSC thus allowing the employer until 12/31/99 to make the contribution?

Should the employer also make an additional contribution to cover lost earnings? If it doesn't, what must the employer do?

[Guest njwhite]

Assuming the plan document is correct in terms of its top-heavy provisions, the top-heavy violation should be eligible for correction under the significant failure provisions of APRSC through 12/31/99.

Regarding the details of how to properly correct, I invite you to review Q&As 62 & 63 of our "Q&As For Plan Defects" at

http://www.benefitslink.com/reish

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