Super Top Heavy Minimum in a Defined Contribution Plan

[Guest BS]

Does the Super Top Heavy minimum designation change from 3% to 4% when dealing exclusively with a defined contribution plan?

[Guest]

if there is no DB plan (I assume thats what you mean by saying 'exclusively', then there is no 4%. it is only 3%. and with the new rules in effect, as far as I can tell, , the term 'super top heavy' is no longer applicable begining in 2000.

[david rigby]

To be picky, the term "super top-heavy" is no longer applicable if your plan has adopted the repeal of IRC 415(e).

[Guest Mr. X]

The entire point of providing a 4% top-heavy minimum is to "buyback" the 1.25 multiplier of the DC and DB dollar limits for purposes of 415(e), instead of being forced to use 1.0 for a top heavy plan. This "buyback" is not available if the plan(s) are super top heavy. Therefore, without a DB plan, there is no reason to consider this extra top-heavy minimum, and with the repeal of 415(e), this becomes a non-issue.