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Full Version: JUNE 97 EXAM, Q62
BenefitsLink Message Boards > Continuing Professional Education > ASPPA C1 - Admin & Qualif Issues
Jean
Can someone please explain the answer?

Based on the following information, what is the participant's annual top-heavy minimum accrued
benefit as of June 30, 1997?

The participant works over 1000 hours per year and only participates in this plan.
The plan has always been super top-heavy.
The top-heavy min benefit is based upon years of service.
The plan year is July 1 to June 30.

DOH = 7/1/90
Plan Effective = 7/1/86
Annual comp:

6/30/91 = $20K
6/30/92 = 25K
6/30/93 = 25K
6/30/94 = 15K
6/30/95 = 22K
6/30/96 = 23K
6/30/97 = 10K

ANSWER = $3080???
pax
Looks to me like the question is testing your knowledge of IRC 416©(1)(D).
High 5 year average comp is 22,000 (92 thru 96). Seven years of top heavy service.
22000 x .02 x 7 = 3080.
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