XVIII. Top-heavy requirements

Statement of Requirement: Code §§ 401(k)(4)(C), 416(c)(2)(A) and 416(g)(4)(G) and (H)

(Note to reviewer: Although Elective Deferrals may not be taken into account for the purpose of satisfying the top-heavy minimum contribution requirement for non-key

37 | Cash or Deferred Arrangement (CODA) LRM Package 01-2024

employees, elective deferrals contributed by a key employee are considered for purposes of determining the key employee’s contribution rate. SIMPLE 401(k) plans and certain Safe Harbor CODAs and qualified automatic contribution arrangements are not subject to the top-heavy requirements. See CODA LRMs XIX and XX.)

(Note to reviewer: For plan years beginning after December 31, 2023, participants who fail to meet the minimum age and service requirements of § 410(a)(1) of the Code may be excluded from receiving a top-heavy contribution. See DC LRM #62. )