http://www.taxalmanac.org/index.php/Internal_Revenue_Code_Sec._416.html WebApr 18, 2024 · There is no guidance directly on point, but the most reasonable interpretation is that Margaret receives a top-heavy minimum contribution for 2011. For top-heavy purposes, a single determination date is prescribed by IRC § 416 (g) (4) for determining both whether the plan is top-heavy and whether an employee is a key or non-key employee.

26 USC 416: Special rules for top-heavy plans

Webwere the subject of good faith bargaining. (See IRC 416(i)(4) and Regs. 1.416-1, T-3 and T-38) • The top-heavy minimum contribution rules and vestingrules of IRC 416 do not apply to any employee included in a unit of employees covered by a collective-bargaining agreement in which retirement benefits were the subject of good faith bargaining. Web§1.416–1 Questions and answers on top-heavy plans. The following questions and answers relate to special rules for top-heavy plans under section 416 of the Internal Revenue Code … detroit wing company sauce

Case of the Week: Who Is an Officer for Top-Heavy Determination?

WebOct 18, 2024 · Under Internal Revenue Code Section (IRC Sec.) 416, a QRP is considered to be top-heavy if more than 60 percent of plan benefits are in the accounts of key … WebIRC §416—Top Heavy Test The plan may be considered top heavy for the next plan year if the account balances of key employees are more than 60% of the account balances of all employees as of the last day of the current plan year. If the plan is top heavy for a given plan year, the employer must make a minimum contribution to the accounts of ... WebInternal Revenue Code Section 416(i)(1)(B)(i) Special rules for top-heavy plans. (i) Definitions.--For purposes of this section-- (1) Key employee.-- (A) In general.--The term “key employee” means an employee who, at any time during the plan year, is-- (i) an officer of the employer having an annual compensation greater than $130,000, detroit wing company sauce scale