How do you calculate the Top Heavy percentage where one of the Key employees (now legally dviorced) has transferred half of his account to his ex-wife (the alternate payee)?
He is a more than 5% owner.
She has never been an employee.
In this case the plan is not top heavy for 2001 even if her balance is included. I'm just curious.
It seems to me that her balance would not be included as she wouldn't meet the definition of Key employee (as she was not an employee). However, if she was an employee her balance would be included for the look back period as she was a more than 5% owner during 2000.