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How do the Top-Heavy rules apply to 401(k) plans?

April 26, 2017plans rules top-heavy

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How do the Top-Heavy rules apply to 401(k) plans?

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If a key employee makes a deferral – a 401(k) contribution – that counts as a contribution that triggers the top-heavy minimum. However, any 401(k) contributions made by nonkey participants do not satisfy the top-heavy minimum requirement.