The plan permits deferrals and profit sharing contributions as a pro-rata contribution only (no matching or Safe Harbor contributions). As of December 31, 2024, the plan is top-heavy: Key employees have deferred $20,000, which is 62.5% of total assets ($32,000). WebTop heavy minimum requirements do not apply in plan years where the only employer contribution to the plan is a safe harbor contribution. In 2024, if this plan makes a 2024 …

How the Top-Heavy compliance test works - Guideline

WebMichelle is a key employee participant in a top-heavy profit sharing plan which follows the least generous graduated vesting schedule permitted under PPA 2006. Each year of her … WebSpecifically, the top heavy minimum contribution is the lower of: 3% of compensation, or The highest percentage contributed to or for any key employee. That means that if any key … nancy\\u0027s boss

What Is A Money Purchase Plan? – Forbes Advisor

Web12. mar 2024 · A 401 (k) plan may be designed to allow an employer to make profit-sharing contributions. Rather than a stand-alone profit-sharing plan, the employer is combining … WebA plan is “top-heavy” if the account balances of key employees represent more than 60% of the account balances of all employees. Plan balances are adjusted to exclude unrelated … nancy\u0027s blush paint