Pat Metallic
Sep 22 2000, 03:35 PM
An employer has only a profit sharing plan that is super top heavy. What is the minimum contribution?
R. Butler
Sep 22 2000, 03:49 PM
Allocations (forfeitures + contributions) must equal the lesser of 3% of eligible comp. or the highest allocation rate to an HCE.
Tom Poje
Sep 22 2000, 03:50 PM
if there is only one plan, the minimum is 3% (or less, depending on what any of the 'key' (not HCE) employees receives.
It doesn't matter if a plan is top heavy or super top heavy
that only mattered if there was a DB plan, and you wanted a 'buy back' on the 415 limit.
with the new regs I don't believe the term matters any more (beginning in 2000)
pax
Sep 25 2000, 07:16 AM
One addition to Tom's comment:
The "buyback" is no longer relevant because of the repeal of IRC 415(e). But the plans must recognize this repeal, either thru plan amendment or by valid reference.
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