Top heavy minimum benefit - avg comp definition

for TH minimum benefit in DBPP:

year of service and avg compensation should be calculated starting from the year of participation right? or both should be counted from year of hire? try to find it on § 1.416-1 but it doesn't show the definition. thanks!

TH years.  See IRC 416(c)(1)(C)

https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section416&num=0&edition=prelim

1 hour ago, david rigby said:

TH years.  See IRC 416(c)(1)(C)

https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section416&num=0&edition=prelim

hi David, the plan has been TH since eff date, e.g. 1/1/2020

the participant was hired in 2021 and became eligible on 1/1/2023. I'm wondering if I should use his YOS (>1000) since hired or entry year. probably I should rely on the plan document but just want to check to see if there is a default language on this. thanks

Hi Audrey,

Most documents (FIS at least) says to use years in which the participant receives credit for TH.  If the participant does not work 1000 hours in a year, then they should not receive credit for TH for that year.

15 hours ago, ConnieStorer said:

Hi Audrey,

Most documents (FIS at least) says to use years in which the participant receives credit for TH.  If the participant does not work 1000 hours in a year, then they should not receive credit for TH for that year.

thank you! this plan also counts YOS and avg comp while participation, instead of since DOH.