Integrated with TWB

I know how to figure a Integrate with TWB but for some reason this is confusing me. What percentage do you use for staff when 2 people (1 owner) have compensation in excess of the TWB? 

Should be spelled out in document, but if you're using 100% of the TWB as integration level then - If the base percentage is less than 5.7% than the base percentage and excess percentage will be the same. If the base percentage is greater than 5.7% than the excess percentage is 5.7%. Dose that make sense or are you having problems backing into the base percentage to max out the owner?

Also if the contribution is "small" and your plan is top-heavy make sure non-key's are getting TH minimum.

There are a couple of mathematically equivalent ways to think about it but I like to think of it as

Base % * compensation capped at 401(a)(17) + Excess % [(compensation capped at 401(a)(17) - Integration level) * minimum of (base percentage or 5.7%)]

5.7% can be reduced if you are using integration level other than 100% of TWB.

7 minutes ago, Lou S. said:

Should be spelled out in document, but if you're using 100% of the TWB as integration level then - If the base percentage is less than 5.7% than the base percentage and excess percentage will be the same. If the base percentage is greater than 5.7% than the excess percentage is 5.7%. Dose that make sense or are you having problems backing into the base percentage to max out the owner?

Also if the contribution is "small" and your plan is top-heavy make sure non-key's are getting TH minimum.

There are a couple of mathematically equivalent ways to think about it but I like to think of it as

Base % * compensation capped at 401(a)(17) + Excess % [(compensation capped at 401(a)(17) - Integration level) * minimum of (base percentage or 5.7%)]

5.7% can be reduced if you are using integration level other than 100% of TWB.

 

Thanks Lou! I figured it out finally!!