Featured Jobs
Retirement Plan Relationship Manager ERISA Services, Inc.
|
Nova 401(k) Associates
|
Bates & Company
|
Nicholas Pension Consultants
|
Prime Pensions, Inc.
|
Trucker Huss, A Professional Corporation
|
Retirement, LLC
|
Compass Retirement Consulting Group, Inc.
|
Central Pension Fund of the IUOE
|
Retirement Plan Legal Specialist Pentegra
|
Carpenter Morse Group
|
Defined Benefit Calculation Specialist/Actuary The Angell Pension Group, Inc.
|
United 401(k) Plans, Inc.
|
Central Pension Fund of the IUOE
|
Free Newsletters
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
 |    |
<< Previous news item | Next news item >>
| Is IRS Website Wrong in Explanation of Top Heavy Minimum Contribution Requirement? BenefitsLink Message Boards  Nov. 17, 2021 "Or, at least I think the site is wrong in this case. On the page 'Is my 401(k) Plan Top-Heavy?' (https://www.irs.gov/retirement-plans/is-my-401k-top-heavy), under the section titled 'Making Minimum Contributions...' it says: 'If the average contribution for all key employees is less than 3%, non-key employees also receive that lower percentage instead of 3%.' I don't believe it's the average contribution for all key employees -- instead, it's the the highest Key Employee's contribution that counts. If I have one Key Employee with a contribution of 2.5% and another with 1.5%, the TH minimum would be 2.5%, not 2%. Agree? So who do I contact at the IRS to ask about it? (Or am I really wrong? I consulted Treas. Reg. sec. 1.414-1, M-7, and the ERISA Outline Book, Chapter 3B, Sec. IV, Part A.2. Both of those seem to agree with my position." |
| Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above). |
| An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified). |
