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§ 416 Minimum Contribution Amounts and § 404(a)(3); § 404(a)(3) Limits Perhaps Waived for § 416 Minimum Contributions


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The 404(a)(3) limit is 25% of compensation.

The top heavy minimum contribution in a DC plan is 3% of compensation.

Since 3 is less than 25, I am not sure why the deduction limit would be an issue here.

Can you be more clear about your question?

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

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