Top Heavy Minimum

[DocumentDiva]

A plan requires a top-heavy minimum for all non-key employees.  The rules state that it only has to be given to non-key employees still employed on the last day of the plan year.  The plan has a participant that retired during the plan year that is receiving the matching contribution due to the last day 1,000 requirement being waived for participants that are normal retirement age. The same waiver is for any profit-sharing allocations.  They would like to apply this to the top-heavy minimum allocation but I'm being told by our recordkeeping software provider that a requirement to receive a top-heavy minimum requirement is that a person has to be employed. Termination is not waived for any reason for the Top-heavy minimum allocation. 
 

[Bill Presson]

Just give the participant an extra profit-sharing allocation . Who cares what it's called?

[Bird]

15 hours ago, DocumentDiva said:

The same waiver is for any profit-sharing allocations. 

So the PS is less than the TH minimum for others? I'm curious about the percentages; something doesn't sound right unless we are talking very low % contributions.

12 hours ago, Bill Presson said:

Just give the participant an extra profit-sharing allocation .

Maybe it's a formula, remember them?