Top Heavy Determination

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DWC |

Can We Offer Additional Matching Contributions Without Losing our Safe Harbor Status?

Facts We currently sponsor a 401(k) plan for our company. While we certainly want to be able to provide meaningful benefits to the owners, our goal is to encourage all our employees to save more for ...
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DWC |

How Do We Stop Our Discretionary Matching Contribution?

Facts My company sponsors a 401(k) plan that provides for a discretionary matching contribution, which we deposit each pay period along with employee deferrals. Given the economic uncertainty, I’m ...
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DWC |

Can We Suspend our Safe Harbor Contribution Mid-Plan Year?

Facts Given the current uncertainty in the world economy and the unknown ongoing affects of coronavirus, I’m looking at all financial obligations for our company, and for opportunities to reduce ...
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DWC |

Have the Rules for Safe Harbor 401(k) Notices Changed?

Facts My company sponsors a safe harbor 401(k) plan and every year my TPA sends me a reminder to distribute a notice to participants. It’s not the biggest hassle but I’ve wondered if it’s really ...
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DWC |

Am I Now Required to Include Part-Time Employees in my 401(k) Plan?

Facts As the owner of a beachside hotel, I sponsor a calendar year 401(k) plan for my employees. In the summer we hire many part-time employees to assist with the uptick in guests and activities. Our ...
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DWC |

Is It Possible to Split Eligibility to Allow for Deferrals but to Postpone Safe Harbor Contributions?

Facts We allow new employees to join our 401(k) plan on the first of the month after they are hired. They become eligible to make deferrals and also receive the company safe harbor contribution at ...
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DWC |

Are We Required to Make Safe Harbor Contributions for HCEs?

Facts My company sponsors a safe harbor 401(k) plan so that all of the highly compensated employees can maximize their deferrals without worrying about failing the ADP test each year. Although we ...
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DWC |

How Do We Identify Highly Compensated Employees for the First Year Our Company Exists?

Facts We established our company on February 1st of this year, and now we are planning to launch our 401(k) plan. We know there are number of tests and determinations that require us to look at ...
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DWC |

Top Heavy vs. ADP: What's the Difference?

Facts As a plan sponsor, I do my best to review the annual compliance reports my TPA sends to me, but to be honest, it might as well be written in a foreign language. For example, several of our ...
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DWC |

Nondiscrimination Testing: Top Heavy Determination

The top heavy determination is one of the nondiscrimination tests required by the IRS to ensure plans do not disproportionately favor certain owners and officers.
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