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Posted

We have a Cash Balance Plan that froze it's benefits early in 2025 (before anyone incurred 1,000 hours).  

Generally they have been making the 7.5% Profit Sharing contribution, in conjunction with the Cash Balance Contribution.  My question is, with the Cash Balance frozen are they still obligated to make the Profit Sharing?  Or is that back to a discretionary contribution and they can make any level since there's no Cash Balance contribution being made (there is no requirement).?

Thanks in advance!

Posted

Sure, if there are no CB accruals then your gateway drops back to whatever your DC allocation itself will require, including potential TH.

Posted

Agree with Bri, just check the top heavy i.e. which plan provides it? Hopefully only DC. If the DC plan allocation is by groups, make sure you still test 1/3 rule on gateway thoiugh.

QKA, QKC, QPA, CBS

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