Top Heavy First year plan - Accrued Employer contributions

[NW529]

An employer is Top Heavy in it's initial plan year. If the plan makes a discretionary match to NHCEs, is this employer contribution included in the Top heavy ratio for the first year? 

Or does it have to specifically be a non-elective contribution as specified in the plan document?

Any feedback would be greatly appreciated. Thank you. 

[Larry Starr]

The last day of the first plan year of the plan's existence is the determination date for both the first and second years. This is determined on an accrued basis for the first year. Anything allocated to the account as of that determination date is included in the calc.

[legort69]

Hi Larry, thank you for your response. So the way I read your statement, a discretionary match paid after year end for the initial plan year would be included in the top heavy calculation.  Correct?

[Larry Starr]

1 hour ago, legort69 said:

Hi Larry, thank you for your response. So the way I read your statement, a discretionary match paid after year end for the initial plan year would be included in the top heavy calculation.  Correct?

Yup!

[BG5150]

What year(s) would that match count for regarding TH remedy?  Could it do double duty--first and second years?

[Bird]

41 minutes ago, BG5150 said:

What year(s) would that match count for regarding TH remedy?  Could it do double duty--first and second years?

If it's part of an account for the first year wouldn't it be part of the account for the second (transferred from a receivable to an invested account, presumably)?