Guest Don N Posted June 9, 2000 Posted June 9, 2000 If a plan is Top Heavy on 1/1/2000 and participant "A" gets 18% of average comp. as his TH minimum & then the plan is not TH on 1/1/2001 does he get 20% of average comp. as his TH min. on 1/1/2001 ??
Guest JAREL Posted June 9, 2000 Posted June 9, 2000 Assuming a calendar year plan, the top heavy determination date for 2000 is 12/31/99, so if the accrued benefit on 12/31/99 (and 1/1/2000) is 18%, then the participant will have to get another 2% for 2000, so that if on the determination date of 12/31/2000 the plan is not top heavy, his accrued benefit on 12/31/2000 (and 1/1/2001) will be 20%.
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