EGTRRA changed the rules for determining when a plan is top-heavy. According to 2001-56, the new rules (definition of key employee, distributions, etc.) are analyzed on December 31, 2001 for a 2002 calendar year plan - the last day of the prior plan year. A new plan was adopted for 2001. Therefore, the determination date for the current plan year is also December 31, 2001 - the last day of the current plan year. It seems to me that you must apply 2 definitions and analyses to December 31, 2001 - one for the current year using the old rules and one for 2002, using the new rules. Has anyone heard anything to the contrary?

You got it right. Always something in transition times.