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 employees, elective deferrals contributed by a key employee are considered for purposes of determining the key employee’s contribution rate. Elective Deferrals may not be taken into account for the purpose of satisfying the minimum top-heavy contribution requirement. 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. )

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