DB/DC Combo - Gateway+top heavy

Hi

Not thinking straight.

DB/DC combo - top heavy plans.

DC is 3% non-elective safe harbor, PS requires 1000 hours+last day rule

DB required 1000 hours for accrual

Top heavy requirement is under the DC plan i.e. DB is not required.

Gateway is 7.5% i.e. 3% of safe harbor plus 4.5% of PS

Participant works 750 hours during the year and employed as of end of year.

Does not get a DB accrual though covered.

Needs to get 4.5% of PS as must satisfy gateway, correct?

Thanks

Is the participant otherwise excludable?

If not then they must get the gateway minimum. Read your plan document carefully and make sure it provides a waiver of the last day/1000 hour rule for a participant who needs to receive the gateway minimum under 1.401(a)(4)-9. If it does not then you will need an -11(g) amendment to grant them the additional PS.

Hi C.B.

Right on the point as gateway is provided without regard to any allocation requirement under profit sharing requirements.

Thank you