401k Mirror/ Excess Plans
A nonqualified 401k mirror plan is for organizations who have been told by their 401k administrator that their plan is a “top heavy” plan due to highly compensated individuals contributing excessive amounts into the qualified 401k retirement plan comparative to the rest of the employees contributing to the plan who are non-highly compensated employees.

A nonqualified 401k mirror plan allows you to “carve out” the highly compensated or designated individuals and design a separate plan with the same attributes as a traditional qualified 401k retirement plan such as a vesting schedule, match on contributions from the organization and multiple investment choices. There are no discrimination testing guidelines and no contribution limits for a nonqualified 401k mirror plan.

A nonqualified 401k excess plan allows an organization to create a separate plan from their qualified 401k retirement plan that provides highly compensated individuals the opportunity to defer additional income on top of their max contribution into their qualified 401k retirement plan. There are no discrimination testing guidelines and no contribution limits for a nonqualified 401k mirror plan.