Mr Bagwell Posted October 6, 2021 Posted October 6, 2021 We have a plan that will be terminating in 2021 at some point, date has not been determined. However, the employer has been sold to new entity and employees are terminated as of 6/30/2021. The plan is Top-Heavy as of 12/31/2020. Non-key employee who is a participant and employed by the employer on the last day of the plan year gets a top heavy minimum. Is it too simple to say the the plan is terminating as of 11/1/2021 and therefore, no top heavy contribution is required? I don't want to miss anything being this feels like such an easy question.... Thanks
duckthing Posted October 7, 2021 Posted October 7, 2021 For top heavy purposes, the plan effectively has a short plan year and a TH minimum would be required (assuming it would otherwise be required!) Prior discussion that may be helpful: Luke Bailey, Bill Presson and Mr Bagwell 3
Mr Bagwell Posted October 7, 2021 Author Posted October 7, 2021 Duck, That was awesome help! I did a search, but this one did not pop up for me. Thanks again. Bill Presson and duckthing 2
Nancy Keppelman Posted October 8, 2021 Posted October 8, 2021 This is surely too easy, but if no contributions were made in 2021 for keys (including no salary reduction contributions) there is no top heavy minimum contribution.
Mr Bagwell Posted October 8, 2021 Author Posted October 8, 2021 Of course there was contributions to KEY employees.
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