FAQ 994: Allocations--Top heavy contribution calculation for New Comparability plan - not topping up


Plan is top heavy and cross tested. I'm running a preliminary projection for the client for current plan yr and the top heavy contribution isn't automatically calculating for participant's who are only 401(k) eligible and still active. Dual Eligibility.


This is true, the system no longer automatically calculates the top heavy "top up" if the allocation method is Multiple Tiers. This was changed in September 2014 as many clients did not like how the new Comp allocation would calculate the minimum top heavy if there was a 0 allocation. This allocation method is designed to allocate as requested (ie. formula).

You should try to use the Reports-Compliance-416 Top Heavy Min. Calc. to locate the employees who need a top up, then code the amount using the transactions or manually (to both the CONTRIB and VALUES). Then code them as "Group B" to override them so that the fields are not changed when you allocate the contribution using the New Comp allocation.