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Posted

Just want to make sure I have this right.  Have a Top Heavy Plan but the only contributions made during '18 was Employee Deferrals (Key Employees all maxed out).  Is a 3% Top Heavy required or is it not since they didn't receive any Employer Contributions?

Thanks in advance!

Posted

Top heavy minimum is required.

Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance.

Corey B. Zeller, MSEA, CPC, QPA, QKA
Preferred Pension Planning Corp.
corey@pppc.co

Posted

the only possible exception would be if key's were not allowed to 'defer' except for $6000 in catch up.

obviously not in this case based on your description, but there is that possibility

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