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Intermedia

 

Risk of Top-Heavy 401(k) Plans

Top-heavy rules require that if 60 percent of a 401(k) plan’s assets are in the accounts of highly compensated or key-employee participants, then the company must make a 3 percent contribution to all eligible employees in addition to the 401(k) match. The risk of a violation is generally higher among smaller companies because of turnover among non-highly compensated employees. (8/2000: Howard Parker – Helpline)

Benefits Link: Top-heavy Employee Plan: IRS

Benefits Link (3/99): The New 401(k) Plan Safe Harbor Design

 

More on 401 (k) in General

 

401 Kafe: 401 (k)alculator: How much will your nest egg be worth?

 

From the 401 Kafe: 

Understanding 401 (k)'s

401 (k): How it Works

401 (k) Advantages

The Drawbacks

Investment Basics

 

PSCA: Profit Sharing 401(k) Council of America

PSCA: Tools & Resources for 401 (k) Investors

PSCA: Profit Sharing and 401 (k) Plan Disclosure Worksheet

PSCA: 42nd Annual Survey of Profit Sharing and 401 (k) Plans

 

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