Dumb question about top-heavy

My client maintains a cash balance and PSP.  Plans were top heavy for 2018, so the TH contribution has to be made.

Plan calls for both HCE and NHCE to get TH, which is provided in the PS.

DB has been funded for 2019 and has terminated 2/28/2020.

Can the owners waive the SH contribution to the PSP if money is an issue?

Did you mean "TH"? Either way, not if the document doesn't allow discretion.

How about you fund it and then they just take a distribution upon termination.  They can even fund it last minute.  If under 59.5 its true there is a 10% penalty tax, but that presumably will be a relatively small price to pay for not having to worry about it.

2 hours ago, austin3515 said:

How about you fund it and then they just take a distribution upon termination.  They can even fund it last minute.  If under 59.5 its true there is a 10% penalty tax, but that presumably will be a relatively small price to pay for not having to worry about it.

Works 4 me.

Sounds good to me, thanks.