Are there any specific requirements for employees to qualify for top-heavy minimum contributions?

The correct choice indicates that employees must meet all eligibility requirements to qualify for top-heavy minimum contributions. Under the rules governing top-heavy plans, it is essential for employees to satisfy specific eligibility criteria, which typically include factors such as service requirements, age, and other plan-defined conditions. If employees do not meet these eligibility criteria, they will not qualify to receive the top-heavy minimum contributions, which are intended to ensure that non-key employees receive a minimum contribution when the plan is top-heavy.

Top-heavy provisions are designed to protect the interests of non-key employees, ensuring they receive a fair share of contributions when the plan primarily benefits key employees. Therefore, eligibility is based on clearly defined criteria that the plan sets forth. This ensures compliance with regulations and provides a structured approach to employee benefit offerings within a qualified retirement plan.