Do deceased Non-key participants get a Top Heavy Minimum?

[Lori H]

Have to be employed on the last day of the plan year.

I can't find anything in 416 that states the deceased gets TH.

[rcline46]

Ooooooooooooooooooohhhhhhhhhhhhhhhh lots of questions to be answered! First for DC plans (you posted into General). Does doc say allocation in year of Death (disability and retirement)? Then they get a normal allocation. Without some special trigger, I would think not.

In a DB plan, only the 1000 hour rule counts, unless of course you have D-D-R option in place, and then they get a normal accrual.

Like they say, when in doubt, read the worlds greatest insomnia cure - the document.

[Lori H]

It's an Ohio National DC document and it makes no mention of an allocation to D,D or R. However, the A.A. states that a P.S. allocation will be made to those who D,D,R during the year.

[Belgarath]

Many documents provide that there would be a "regular" allocation, but NOT a top heavy - even if the TH would be larger than the regular allocation. Although that seems odd, truth is stranger than fiction...

[Lori H]

Sure, I am aware of that, but it just seems odd that the code nor the document does not address TH allocation to the deceased.

[BG5150]

If document is silent on the issue, I would say this person was not employed on the last day of the year and thus, is not eligible for a TH contribution. As Belgarath said, the participant might be eligible for a Profit Sharing allocation, though.

[Lori H]

No p.s. only TH and yes I am thinking that way too. Can't be employed if they are a goner.