medium · Certified Financial Planner Retirement
A client, Ravi Saini, is a 5% owner and key employee at his firm. The 401(k) plan is determined to be 'top-heavy' in 2026.
What is the minimum contribution the firm must provide to non-key participants?
- 3% of compensation
- 100% of the first 3% deferred
- $24,500, matching the elective deferral limit.
- 1% of compensation
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