Which of the following vesting schedules may a topheavy qual

Which of the following vesting schedules may a top-heavy qualified cash balance plan use?

A. 2 to 6 year graduated. 3

B. 3-year cliff.

C. 3 to 7 year graduated.

D. 5 year cliff.

Solution

Correct option is A) 2 to 6 year graduated. 3

A top heavy is a qualified defined benefit retirement plan that accelerate vesting to 2 to 6 year graduated or 3 year cliff vesting schedule.