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Posted

Plan amended as of 07/01/2017 to exclude per diem employees.  Plan is top heavy.  Must per diems who were participants until 07/01 receive a top heavy contribution for 2017? 

Posted

I believe there is no clear guidance on this and there are different thoughts.  One is that because they are not eligible at the end of the year, they are not required to receive a top heavy contribution.  The other (which is what I think is correct) is that the former participants are entitled to a contribution because they were participants during the year and are still employed at year end.  They are also entitled to contribution on full year of comp under 415 as well

Posted

Agree with Madison's belief of the correct answer.  He gets the TH minimum and for his entire compensation for the year.

Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC
President
Qualified Plan Consultants, Inc.
46 Daggett Drive
West Springfield, MA 01089
413-736-2066
larrystarr@qpc-inc.com

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