Cross tested plan & Top Heaviness

[richard]

A profit dharing plan establishes 3 categories of employees, Category A, who are INELIGIBLE for the plan, and Categories B and C.

The plan is Top Heavy.

Do Top Heavy minimum contributions need to be provided for employees of Category A?

Variation on this question.

A defined benefit plan excludes employees of Category A. The plan is Top Heavy. Does the plan need to provide Top Heavy minimum accruals for employees of category A?

Thanks

[Kathy]

If the plan satisfies coverage tests by excluding catagory A employees and they truly are not eligible for the plan, then they don't need to receive a top-heavy minimum.

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Kathy Hull

Retirement Plans Consultant

khull@fuse.net