top heavy requirement if Key employee is over 50 and defers catch up only?

[Lori H]

If a Key employee defers $5500 only, receives no match, would the sponsor still be required to make a T.H. contribution?

[Tom Poje]

the original preamble to the catch up regs had an example in which HCEs (since it was an example it could be keys) in which the document specified HCEs were limited to 0%.

therefore that was a plan imposed limit and anything above would be treated as a catch up.

but you can't simply treat any deferral as a catch up - there has to be a limit or failed test

[Lori H]

The 2 Key employees in this plan never defer over $5500 annually anyway. I trust that they can't defer any amount unless they want to be forced to make the TH minimum.

[Lou S.]

If the plan is TH than the $5500 deferral will trigger TH minumum.

[Lori H]

thank you